Editor’s Note
West Point Gold Corp. has successfully closed a private placement, raising approximately C$25 million to fund its exploration and development activities.
West Point Gold Corp. (TSXV: WPG) (OTCQB: WPGCF) (FSE: LRA0) (“West Point Gold” or the “Company”) is pleased to announce the closing of its previously announced “commercially reasonable efforts” private placement for aggregate gross proceeds of approximately C$25 million (the “Offering”). The Offering consisted of 22,727,300 common shares (the “Shares”) issued at a price of C$1.10 per Share (the “Issue Price”). The syndicate of agents was led by SCP Resource Finance LP and included ATB Cormark Capital Markets, Red Cloud Securities Inc., Paradigm Capital Inc., and Canaccord Genuity Inc. (collectively, the “Agents”).
As consideration for their services, the Agents received an aggregate cash commission of C$837,470, equal to 5% of the gross proceeds of the Offering, except for Shares sold to purchasers on the Company President’s List, which were subject to a reduced cash commission of 2%. SCP Resource Finance LP and Red Cloud Securities Inc. each elected to receive 50% of their cash commission in Shares, representing 264,162 Shares at the Issue Price (“Agent Option Shares”). The Agents were also paid an advisory fee of C$34,741. As additional consideration, the Agents were issued 1,045,456 broker warrants (“Broker Warrants”) equal to 5% of Shares sold, with no broker warrants issued for Shares sold to the President’s List. Each Broker Warrant is exercisable to purchase one Share at the Issue Price until February 19, 2028 (“Broker Warrant Shares”).
The Company intends to use the net proceeds from the Offering for exploration and advancement of the Company’s Gold Chain Project in Arizona, USA, and for general corporate and working capital purposes.
All Shares, including the Agent Option Shares, and Broker Warrants and Broker Warrant Shares issued under the Offering are subject to a statutory hold period in accordance with applicable Canadian securities laws, expiring June 20, 2026. The Offering remains subject to the final acceptance of the TSX Venture Exchange.
Directors of the Company including Andrew Bowering, Anthony Paterson and Conrad Nest participated in the Offering and acquired 659,600 Shares for C$725,560. The participation of these insiders constitutes a Related Party Transaction under Multilateral Instrument 61-101. The board of directors, with the participating directors abstaining, determined that the transaction is exempt from formal valuation and minority shareholder approval requirements based on specific exemptions in MI 61-101, as neither the fair market value of securities issued to the insiders nor the consideration paid by the insiders exceeded 25 percent of the Company’s market capitalization.
West Point Gold Corp. (formerly Gold79 Mines Ltd.) is a publicly listed company focused on gold discovery and development at four prolific Walker Lane Trend projects covering Nevada and Arizona, USA. West Point Gold is focused on developing a maiden resource at its Gold Chain project in Arizona, while JV partner Kinross is advancing the Jefferson Canyon project in Nevada.