West Point Gold unveils $7 million bought deal financing
West Point Gold Corp. [WPG-TSXV, WPGCF-OTCQB, LRA0-FSE] said it has struck a deal with an underwriting syndicate in connection with a $7 million bought deal private placement. The company said it intends to use the net proceeds for exploration and advancement of its Gold Chain project, Arizona, sustaining and exploration expenditures on its projects in Nevada.
In a May 15, 2025, press release the company announced the most recent drill results from its ongoing reverse circulation drill program at the Gold Chain Tyro Main Zone.
The offering will consist of the issuance and sale of 15.5 million units priced at 45 cents per unit. Each unit will consist of one common share, and one half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share for 55 cents at any time before 5:00 p.m. (Toronto time) on a date that is 24 months following, closing which is set to occur on June 10, 2025.
The expiry date of the warrants will accelerate in the event that the common shares trade above 90 cents for a period of 20 consecutive trading days. If an acceleration event occurs, the warrants will expire 30 days after notice of any such acceleration event is given.
West Point has granted the underwriters an option to increase the size of the offering to raise additional gross proceeds of up to $1.0 million. That option is exercisable in whole or in part at any time prior to the closing date.
On Friday West Point shares eased 6.1% or $0.03 to 46 cents. The shares trade in a 52-week range of 67 cents and 15 cents.
West Point, a company that was previously known as Gold79 Mines, changed its name after Quentin Mai was named CEO and made a member of the board of directors. Mai has over 25 years of capital market and corporate communications experience working with successful early-stage growth companies from mineral discovery to production. He spent over 10 years at Corvus Gold, from its founding to eventual sale to AngloGold Ashanti Plc. [AU-NYSE, ANG-JSE, AGG-ASX], for $570 million.
West Point Gold recently completed an amalgamation with Bullet Exploration. The transaction was expected to create a well funded gold exploration company with a focus on the southwestern U.S.
West Point holds 100% earn-in option to purchase agreements on three gold projects, the Jefferson Canyon and Tip Top projects in Nevada and the Gold Chain project in Arizona. It also holds a 32.3% stake in the Greyhound Project, Nunavut, under a joint venture with Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE).
West Point is focused on delivering a maiden resource at its Gold Chain project, exploring the newly acquired Jefferson North Gold-Silver Project in Nevada to define its scale potential, and continue to work with Kinross Gold Corp. (K-TSX, KGC-NYSE) to get a maiden drill program at Jefferson Canyon underway.
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