Westward Gold (CSE:WG) has upsized its non-brokered private placement to C$12 million ($12.1 million) due to investor demand.
The company will issue up to 48 million units at C$0.25 each. Each unit comprises one common share and half a warrant, with full warrants exercisable at C$0.40 for 24 months following closing.
Strategic investors Crescat Capital and Concept Capital Management have committed a combined C$2.8 million. Crescat will subscribe for 7.2 million units worth C$1.8 million, while Concept Capital will take 4 million units for C$1 million.
Westward intends to use proceeds primarily to fund ongoing drilling at its flagship Toiyabe Hills Property along Nevada’s Cortez Trend, plus additional trenching, geological mapping, rock-chip and soil sampling programs, and geophysical surveys.
The company also plans to increase cash bonding with the US Bureau of Land Management to allow expanded ground disturbance and cover general working capital.
The offering requires regulatory approvals, including from the Canadian Securities Exchange. Securities will be subject to a four-month-and-one-day hold period under applicable securities laws and CSE requirements.
Westward notes company insiders intend to participate in the offering, constituting a related party transaction under Multilateral Instrument 61-101. The participation is expected to be exempt from formal valuation and minority shareholder approval requirements as neither the fair market value nor consideration will exceed 25% of the company’s current market capitalisation.
Westward Gold is a mineral explorer focused on developing the consolidated Toiyabe Hills Project in Nevada’s Cortez Hills area and the Coyote and Rossi projects along the Carlin Trend in Elko County.
Write to Paula Fabe at Mining.com.au
Images: Westward Gold
