White gold obtains an infusion of capital knowledge


White Gold Corp. will use a C $ 9 million investment through its strategic partner and investor Agnico Eagle Mines Ltd. for working capital and general business needs. But the transaction has another advantage: it gives White Gold access to a huge level of expertise in all areas of mining.

White Gold Corp. (WGO: TSX.V; WHGOF: OTCQX; 29W: FRA) indicated in a press release dated November 25, 2021 that it had obtained gross proceeds of approximately C $ 9 million through a non-middleman private placement of its existing strategic partner and investor Agnico Eagle Mines Ltd. The transaction included two tranches of flow-through common shares priced at C $ 0.98 and C $ 0.80 per share as well as common shares in the capital of White Gold Corp. priced at C $ 0.70 per share. The share purchase follows an agreement between the two companies signed in December 2016 and, once completed, Agnico Eagle’s total stake in White Gold stands at 19.9%.

“White Gold seems to tick all the boxes.”

—David D’Onofrio, CEO and Director of White Gold

The company said in the announcement that the net proceeds received from the investment will be used for working capital and general business purposes.

The company is well funded and is backed by a list of reputable investors which includes two world renowned gold mining companies, Agnico Eagle, which now owns 19.9% ​​of the company and Kinross Gold which owns 17.1%. Company insiders, including PowerOne Capital Markets Ltd., a Toronto-based investment bank with extensive experience in global mining and management of White Gold, collectively make up the largest stake in the company with 22, 9%. The remaining 42.9% of the company’s stock is held by renowned mining investor Eric Sprott, other strategic institutional investors and float stocks which make up around 30% of the company’s outstanding stock.

The relationship with Agnico Eagle and Kinross provides the company with access to a considerable level of expertise in all areas of mining. As gold producing companies, their mission is to access large amounts of gold for their customers.

Underground haul trucks, Agnico Eagle Mines

White Gold exploration techniques cover large areas quickly and safely

One of the things that makes the company so unique and special is the way it conducts its exploration work. Company co-founder, chief technical advisor and director Shawn Ryan has been prospecting for gold in the region for over 20 years. Ryan has developed a “Drones to Drills” program using technology licensed from Ground Truth Exploration Inc. that incorporates historical data, unique methods of deeper soil sampling and advanced LIDAR surveys.

This process allows the company to explore a large area very quickly, safely and economically. The company often uses efficient and cost effective compressed air (RAB) rotary drilling in its white gold district projects, as well as follow-up RC or diamond drilling, as needed, to verify grades and the width of the ore. RAB drills use compressed air and can reach depths of 100 m. The technique does not require water, which makes it cheaper to use and more environmentally friendly.

Regarding White Gold’s long-term outlook for the White Gold District, CEO D’Onofrio said that “as an exploration company, the ideal vision and dream for the company would be to continue to own the district, to make discoveries and monetize them on an individual basis to maximize prospective value. “

D’Onofrio noted that exploration companies such as White Gold are generally able to get the most value by making new discoveries and that it is best to leave the construction of mines to developers who have a business model. and a totally different level of expertise. Put simply, D’Onofrio said, “This is not what our company is designed for. We want to be a generator of projects. We have this asset that is ours, and I think we can continue to make discoveries and sell them to other people. to be put into production for decades to come. “

When asked what sets the company and the White Gold District apart from other mining and local companies, D’Onofrio said he thought from an investor’s perspective: “White gold seems to tick all the boxes. boxes”.

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or the members of his household have securities of the following companies mentioned in the article: None. He or the members of his household are remunerated by the following companies mentioned in this article: None.
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