McEwen pledges strategic investment in Westhaven Gold
Westhaven Gold Inc. [WHN-TSXV] said it has received overnight a strategic commitment from financier Rob McEwen of $1.5 million as part of a previously announced brokered private placement offering
On September 25, 2024, Westhaven announced details of a marketed offering that is expected to generate gross proceeds of $5 million from the sale of 10 million units of the company priced at 15 cents per unit, generating proceeds of up to $1.5 million. The company aims to raise a further $3.5 million from the sale of any combination of the following:
- Common shares that will qualify as flow-through shares within the meaning of the Income Tax Act (Canada) at a price of 17.5 cents per traditional flow-through shares.
- Flow-through units to be sold to charitable purchasers at a price of 22 cents per charity flow-through unit.
The company said McEwen has pledged to make a strategic investment of $1.5 million in offered securities, through his private holding company, Evanachan Ltd. McEwen is the founder and former Chairman of Goldcorp, is currently the Chairman and largest shareholder of McEwen Mining Inc. [MUX-TSX, NYSE], and is a member of he Mining Hall of Fame.
Westhaven Gold shares eased 2.9% or $0.005 to 16.5 cents and trade in a 52-week range of 33.5 cents and 11.5 cents.
Westhaven is a gold-focused exploration company advancing a high-grade discovery on the Shovelnose project in Canada’s newest gold district, the Spences Bridge Gold Belt near Merritt, British Columbia.
Westhaven holds a 100% interest in over 37,000 hectares of ground on four gold properties within the Spences Bridge Gold Belt (SBGB), an area that the company believes is highly prospective for epithermal type gold mineralization.
All of the four properties are located to the west of Teck Resources Ltd.’s (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) Highland Valley Copper and the New Gold Inc. (NGD-TSX, NYSE American) New Afton mine.
The SBGB is a 110-kilometre northwest-trending belt of intermediate to felsic volcanic rocks dominated by the Cretaceous Spences Bridge Group. Talisker Resources Ltd. [CSE-TSX, TSKFF-OTCQB] and Westhaven have a combined control of 86% of the SBGB [225,000 hectares]. Any ground acquired by Talisker within five-kilometres of Westhaven’s existing properties is subject to a 2.5% net smelter return royalty.
The 17,542-hectare Shovelnose property is located near the southern end of the SBGB and borders a major B.C. highway known as the Coquihalla. The proximity to highway infrastructure permits year-round exploration at the property.
The location of its properties in southwestern British Columbia means they are easily accessible by road (2.5 hours from Vancouver) and amenable to low-cost exploration.
In 2023, Westhaven completed multiple exploration programs across its properties on the Spence Bridge Gold Belt, which resulted in the identification of several new gold mineralized areas of interest, the company has said. At the Shovelnose, drilling has outlined a gold mineralized corridor between Line 6, Southeast FMN, and the MIK zones where multiple vein and structures appear to coalesce.