White Gold Gets Infusion of Capital Knowledge

White Gold Corp. will use an investment of CA$9 million through strategic partner and investor Agnico Eagle Mines Ltd. for working capital and general corporate purposes. But the transaction has another benefit: It gives White Gold access to a tremendous level of expertise across all areas of mining.

White Gold Corp. (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) advised in a November 25, 2021 news release that it secured gross proceeds of approximately CA$9 million through a non-brokered private placement from its existing strategic partner and investor Agnico Eagle Mines Ltd. The transaction included two tranches of flow-through common shares at prices of CA$0.98 and CA$0.80 per share along with common shares in the capital of the White Gold Corp. priced at CA$0.70 per share. The share purchase is pursuant to an agreement between the two companies executed in December 2016 and upon completion raises Agnico Eagle’s total ownership interest in White Gold to 19.9%.

“White Gold appears to check all the boxes.”

—David D’Onofrio, White Gold CEO and Director 

The company listed in the announcement that the net proceeds received from the investment will be used for working capital and general corporate purposes.

The company is well funded and is backed by an all-star list of investors that includes two world renowned gold mining firms Agnico Eagle, which now owns 19.9% of the company and Kinross Gold that owns 17.1%. Company insiders including PowerOne Capital Markets Ltd., a Toronto-based merchant bank with extensive experience in global mining and White Gold’s management together make up the largest ownership position in the company at 22.9%. The remaining 42.9% of the company’s shares are owned by famed mining industry investor Eric Sprott, other strategic institutional investors and public float shares which represent about 30% of the outstanding shares in the company.

The relationship with Agnico Eagle and Kinross offers the company access to a tremendous level of expertise across all areas of mining. As producing gold companies, their mission is to gain access to large amounts of gold for its customers.

Underground haul trucks, Agnico Eagle Mines

White Gold’s exploration techniques cover large areas quickly, safely

One of the things that makes the company so unique and is special is the way in which it conducts its exploration work. The company’s co-founder, Chief Technical Advisor and Director Shawn Ryan has been prospecting for gold in the region for more than 20 years. Ryan has developed a “Drones to Drills” program using technology licensed from Ground Truth Exploration Inc. that incorporates historic data, unique deeper soil sampling methods and advanced LIDAR surveys.

This process allows the company to explore a large area in a very quick, safe and economical manner. The company often employs efficient, lower-cost rotary air blast (RAB) drilling at its White Gold District projects along with follow-up RC or diamond drilling as appropriate to verify ore grades and width. The RAB drills use compressed air and can reach depths of 100 m. The technique does not require water which makes it cheaper to use and more environmentally friendly.

Regarding White Gold’s long-term prospects for the White Gold District, CEO D’Onofrio commented that, “as an exploration firm, the ideal vision and dream for the company would be to continue to own the district, make discoveries and monetize those on an individual basis to optimize the prospective value.”

D’Onofrio noted that exploration firms such as White Gold typically are able to get the greatest value by making new discoveries and that is best to leave the building of mines to the developers which have an entirely different business model and level of expertise. Simply put, D’Onofrio stated, “That’s not what our company is built to do. We want to be a project generator. We have this asset which we own, and I think we can continue to make discoveries and vend them to other people to put into production for literally decades to come.”

When asked about what makes the company and the White Gold District stand out amongst other mining firms and locales, D’Onofrio commented that he believes from an investor’s perspective, “White Gold appears to check all the boxes.”

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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