Westhaven Gold up 39% on Dundee Corp earn-in deal
Westhaven Gold Inc. [WHN-TSXV] said Monday it has granted Dundee Corp. [DC.A-TSX] the right to acquire up to a 60% interest in a basket of Westhaven projects located in the Spences Bridge Gold Belt in southern B.C. Dundee can earn the interest in the Shovelnose, Prospect Valley, Skoonka Gold and Skoonka North prospects by spending $85 million. Dundee is making a firm commitment to invest at least $30 million within three years of the effective date of the agreement.
Westhaven shares soared on the news, rising 39.4% or $0.065 to 23 cents. The shares trade in a 52-week range of 25.5 cents and $0.084.
“Today’s announcement of a definitive earn-in agreement with Dundee Corp. is transformative for Westhaven, representing confidence in the potential for the Shovelnose Gold Project and broader Spence Bridge Gold Belt, to evolve into a multi-deposit, multi-generational gold mining camp in a region of British Columbia with exceptional infrastructure advantages and a long history of mine development,’’ said Westhaven CEO Ken Armstrong.
Dundee’s interest in the projects, when earned, will be held through a newly incorporated subsidiary (JVCo). In addition, Dundee has also agreed to subscribe, on a private placement basis, for 12 million common shares of Westhaven priced at 25 cents each, for gross proceeds of $3.0 million. The financing is expected to close on December 31, 2026.
The agreement calls for an expected 2026 project expenditure of $20 million, money that will fund infill resources and technical drilling at the South Zone gold deposit, targeted exploration drilling at the Shovelnose property, an expanded environmental baseline program and the launch of project engineering studies in support of a pre-feasibility study.
The 2026 drilling plans at Shovelnose are supported by a multi-year notice of work authorization, allowing for 650 drill pads to be completed through January 30, 2029. Westhaven will remain operator of the projects until Dundee earns 50%/
Dundee Corp. is a holding company with an asset base that includes investments in precious and base metals projects across three continents. The portfolio includes a 35.7% stake in SPC Nickel Corp. [SPC-TSXV] and 18.8% of Magna Mining Corp. [NICU-TSXV, MGMNF-OTCQB, BYD-FSE].
In a press release on March 3, 2025, Westhaven reported the completion of an updated PEA at its 100%-owned 41,634-hectare Shovelnose property, which is located within the prospective Spences Bridge Gold Belt, which borders which borders the Coquihalla Hwy., 30 kilometres south of Merritt, B.C. The company said the PEA outlines a robust, low-cost, rapid pay-back, high-margin, 11.1-year underground gold mining opportunity and is based on updated mineral resources that include contributions from the South, Franz and FMN zones.
According to the PEA, the proposed mine will operate over an initial 11.1-year mine-life with average annual life-of mine gold production of 56,000 ounces. Initial capital expenditures to fund construction and commissioning is estimated at $184 million, with a life-of-mine capital cost of $379 million and a payback period of 2.1 years.