Westhaven Gold Corp. (TSXV: WHN) has successfully completed a previously announced royalty sales and private placement.
In mid-September 2022, the company entered into a financing arrangement with Franco-Nevada Corporation, the leading gold-focused royalty and streaming company.
“The proceeds from this transaction will allow Westhaven to accomplish a substantial amount of drilling and exploration work across our Spences Bridge Gold Belt properties,” President and CEO, Gareth Thomas, said.
Westhaven has completed the grant and sale of a 2% net smelter return royalty (the “NSR”) to Franco-Nevada for US$6 million. The NSR applies to all of Westhaven’s claims across the Spences Bridge Gold Belt in southwestern British Columbia, Canada. Westhaven has an option to buy-down 0.5% of the NSR for US$3 million for a period of five years from the closing of the transaction.
Westhaven has also sold to Franco-Nevada for US$750,000 a 2.5% net smelter return royalty originally granted to Westhaven by Sable Resources Ltd in October 2018.
In addition, Franco-Nevada subscribed for 2,500,000 shares of the company at a price of C$0.40 per share for gross proceeds of C$1 million (the “Private Placement”).
Westhaven has four gold and silver properties in the Spences Bridge Gold Belt in southwestern British Columbia totalling in excess of 37,000 hectares. In January 2022, Westhaven announced a mineral resource estimate of 841,000 indicated ounces at 2.47 g/t gold equivalent and 277,000 inferred ounces at 0.94 g/t gold equivalent at the Shovelnose gold property where drilling is ongoing.
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.
The Private Placement remains subject to final TSX Venture Exchange (TSXV) approval, and all securities issued in the Private Placement are subject to a statutory hold period in accordance with applicable securities legislation and the rules and policies of the TSXV lapsing on February 7th, 2023.
The proceeds of the Private Placement and the sales of the NSR and Talisker Royalty will be utilised for exploration on the Spences Bridge Gold Belt properties and for general working capital purposes.
For further information please visit: https://westhavengold.com/
