White Gold Corp. (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) advised in a November 25, 2021 news release that it secured gross proceeds of approximately CA$9 million through a non-brokered private placement from its existing strategic partner and investor Agnico Eagle Mines Ltd. The transaction included two tranches of flow-through common shares at prices of CA$0.98 and CA$0.80 per share along with common shares in the capital of the White Gold Corp. priced at CA$0.70 per share. The share purchase is pursuant to an agreement between the two companies executed in December 2016 and upon completion raises Agnico Eagle's total ownership interest in White Gold to 19.9%.
"White Gold appears to check all the boxes."
—David D'Onofrio, White Gold CEO and Director
The company listed in the announcement that the net proceeds received from the investment will be used for working capital and general corporate purposes.
The company is well funded and is backed by an all-star list of investors that includes two world renowned gold mining firms Agnico Eagle, which now owns 19.9% of the company and Kinross Gold that owns 17.1%. Company insiders including PowerOne Capital Markets Ltd., a Toronto-based merchant bank with extensive experience in global mining and White Gold's management together make up the largest ownership position in the company at 22.9%. The remaining 42.9% of the company's shares are owned by famed mining industry investor Eric Sprott, other strategic institutional investors and public float shares which represent about 30% of the outstanding shares in the company.
The relationship with Agnico Eagle and Kinross offers the company access to a tremendous level of expertise across all areas of mining. As producing gold companies, their mission is to gain access to large amounts of gold for its customers.
White Gold's exploration techniques cover large areas quickly, safely
One of the things that makes the company so unique and is special is the way in which it conducts its exploration work. The company's co-founder, Chief Technical Advisor and Director Shawn Ryan has been prospecting for gold in the region for more than 20 years. Ryan has developed a "Drones to Drills" program using technology licensed from Ground Truth Exploration Inc. that incorporates historic data, unique deeper soil sampling methods and advanced LIDAR surveys.
This process allows the company to explore a large area in a very quick, safe and economical manner. The company often employs efficient, lower-cost rotary air blast (RAB) drilling at its White Gold District projects along with follow-up RC or diamond drilling as appropriate to verify ore grades and width. The 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 prospects for the White Gold District, CEO D'Onofrio commented that, "as an exploration firm, the ideal vision and dream for the company would be to continue to own the district, make discoveries and monetize those on an individual basis to optimize the prospective value."
D'Onofrio noted that exploration firms such as White Gold typically are able to get the greatest value by making new discoveries and that is best to leave the building of mines to the developers which have an entirely different business model and level of expertise. Simply put, D'Onofrio stated, "That's not what our company is built to do. We want to be a project generator. We have this asset which we own, and I think we can continue to make discoveries and vend them to other people to put into production for literally decades to come."
When asked about what makes the company and the White Gold District stand out amongst other mining firms and locales, D'Onofrio commented that he believes from an investor's perspective, "White Gold appears to check all the boxes."
Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: White Gold Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with White Gold Corp. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of White Gold Corp., a company mentioned in this article.
