Westhaven Gold Corp. (TSXV: WHN) has entered into a financing arrangement with Franco-Nevada Corporation, a leading gold-focused royalty and streaming company.
Westhaven has agreed to sell a 2% net smelter return royalty (the “NSR”) to Franco-Nevada for US$6,000,000.
The NSR applies to all of Westhaven’s claims across the Spences Bridge Gold Belt (the SBGB) in Southwestern British Columbia, Canada.
Westhaven has an option to buy-down 0.5% of the NSR for US$3,000,000 for a period of five years from the closing of the transaction. Westhaven has also agreed to sell to Franco-Nevada for US$750,000 the Talisker Resources Ltd. net smelter return royalty originally granted to Westhaven by Sable Resources Ltd.
In addition, Franco-Nevada has agreed to subscribe for 2,500,000 shares of the company at a price of C$0.40 for gross proceeds of C$1,000,000.
“We are very pleased to welcome Franco-Nevada as a shareholder and stakeholder in Westhaven and the Spences Bridge Gold Belt. Franco-Nevada’s investment is a major endorsement of Westhaven’s properties in Southwestern British Columbia. Westhaven’s exploration activities across its projects are now fully financed until 2024,” President and CEO, Gareth Thomas, said.
Westhaven has an ongoing drill campaign at its 100% owned 17,623-hectare Shovelnose gold property. Shovelnose is located within the SBGB and borders the Coquihalla Highway 30 kilometres (km) south of Merritt, British Columbia. Westhaven benefits from the B.C. Mining Exploration Tax Credit (the METC) which is a permanent incentive to support investment in mining. The METC is a refundable B.C. income tax credit for eligible individuals and corporations conducting grassroots mineral exploration in B.C. and can be claimed on up to 30% of qualified mining exploration expenditures. Westhaven can claim the full 30% METC as its properties fall within mountain pine beetle affected areas.
For further information please visit: https://www.westhavengold.com/
