VANCOUVER, British Columbia, Sept. 14, 2022 (GLOBE NEWSWIRE) -- Westhaven Gold Corp. (TSX-V: WHN) (“Westhaven” or the “Company”) is pleased to announce that it has entered into a financing arrangement with Franco-Nevada Corporation (TSX, NYSE: FNV) (“Franco-Nevada”), the leading gold-focused royalty and streaming company.
Westhaven has agreed to sell a 2% net smelter return royalty (the “NSR”) to Franco-Nevada for US$6,000,000 (the “NSR Transaction”). The NSR applies to all of Westhaven’s claims across the Spences Bridge Gold Belt (the “SBGB”) in Southwestern British Columbia, Canada. Westhaven has an option to buy-down 0.5% of the NSR for US$3,000,000 for a period of 5 years from the closing of the transaction. Westhaven has also agreed to sell to Franco-Nevada for US$750,000 the Talisker Resources Ltd. net smelter return royalty (the “Talisker Royalty”) originally granted to Westhaven by Sable Resources Ltd. and referenced in Westhaven’s news release dated October 16th, 2018 (the “Talisker Royalty Transaction”). Link to news release: Westhaven news release October 16th, 2018
In addition, Franco-Nevada has agreed to subscribe for 2,500,000 shares of the Company at a price of CAD$0.40 for gross proceeds of CAD$1,000,000 (the “Private Placement”).
Gareth Thomas, President & CEO, comments: “We are very pleased to welcome Franco-Nevada as a shareholder and stakeholder in Westhaven and the Spences Bridge Gold Belt. Franco-Nevada’s investment is a major endorsement of Westhaven’s properties in Southwestern British Columbia. Westhaven’s exploration activities across its projects are now fully financed until 2024.”
Westhaven has an ongoing drill campaign at its 100% owned 17,623-hectare Shovelnose gold property. Shovelnose is located within the SBGB and borders the Coquihalla Highway 30 kilometres (km) south of Merritt, British Columbia. Westhaven benefits from the B.C. Mining Exploration Tax Credit (the “METC”) which is a permanent incentive to support investment in mining. The METC is a refundable B.C. income tax credit for eligible individuals and corporations conducting grassroots mineral exploration in B.C. and can be claimed on up to 30% of qualified mining exploration expenditures. Westhaven can claim the full 30% METC as its properties fall within mountain pine beetle affected areas.
The Private Placement remains subject to TSX Venture Exchange approval, and all securities issued in the Private Placement will be subject to a four-month hold period, during which time the securities may not be traded. Further, each of the NSR Transaction, the Talisker Royalty Transaction and the Private Placement remain subject to satisfaction of closing conditions customary for transactions of this nature.
On behalf of the Board of Directors
WESTHAVEN GOLD CORP.
Shaun Pollard, CFO
Tel: 1.604.681.5558 Ext: 103
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This new release contains forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. We do not assume any obligation to update any forward-looking statements, other than as required by securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Westhaven Gold Corp.
Westhaven is a gold-focused exploration company advancing the high-grade discovery on the Shovelnose project in Canada’s newest gold district, the Spences Bridge Gold Belt. Westhaven controls 37,000 hectares (370 square kilometres) with four 100% owned gold properties spread along this underexplored belt. The Shovelnose property is situated off a major highway, near power, rail, large producing mines, and within commuting distance from the city of Merritt, which translates into low-cost exploration. Westhaven trades on the TSX Venture Exchange under the ticker symbol WHN. For further information, please call 604-681-5558 or visit Westhaven’s website at www.westhavengold.com.