Rio Tinto invests $25.6 million in Western Copper and Gold

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Western Copper and Gold Corp. [WRN-TSX, NYSE American] received a $25.6-million strategic investment by Rio Tinto Canada Inc. to advance the company’s copper-gold Casino project 300 km northwest of Whitehorse, Yukon.

Rio Tinto has agreed to subscribe for and purchase 11,808,490 common shares at a price of C$2.17 per share for aggregate gross proceeds of approximately C$25.6 million, resulting in Rio Tinto owning approximately 8.0% of Western’s outstanding common shares.

“We are pleased to welcome Rio Tinto as a strategic investor in the company,” said Dr. Paul West-Sells, President and CEO. “The investment by Rio Tinto, a leading global mining group which operates in 35 countries around the world, and whose purpose is to produce the materials essential to human progress is a strong endorsement of the Casino Project. We look forward to working with Rio Tinto to advance Casino.”

Western remains the sole owner of the Casino Project and will continue to be the operator. The company will use the proceeds of the strategic investment to fund specific areas of study, which will form part of the feasibility study and permitting with the aim of progressing to a development phase for the Casino Project. The investment represents an opportunity for Rio Tinto to better understand the potential of the Casino Project.

Western Copper and Rio Tinto will enter into an investor rights agreement, whereby, subject to certain conditions, including time and ownership thresholds, Rio Tinto will have certain rights, including the right to appoint one member to a Casino Project Technical Committee, one non-voting observer to attend all meetings of the board of directors of the company, one director, if Rio Tinto’s ownership increases to at least 12.5%, and up to three secondees to the Casino Project

Rio Tinto will also have a right to participate in future equity issuances to maintain its ownership in the company and will be provided with a one-time “demand registration right” and “piggy-back registration rights.”

The closing of the strategic investment is expected to occur on or about May 31, 2021 and is subject to regulatory approval, including that of the Toronto Stock Exchange and the NYSE American LLC. The common shares will be subject to a statutory hold period in accordance with applicable securities legislation.

 


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