White Gold Corp. Announces Fully Subscribed C$6 Million Private Placement of Flow-Through Common Shares; Agnico Eagle and Kinross to Maintain Interest; Eric Sprott to Participate

TORONTO, May 15, 2020 (GLOBE NEWSWIRE) -- White Gold Corp. (TSX.V: WGO, OTC – Nasdaq Intl: WHGOF, FRA: 29W) (the “Company”) is pleased to announce a non-brokered private placement of 6,666,667 common shares (the “Shares”) of the Company to be issued on a flow-through basis at a price of C$0.90 per Share for gross proceeds to the Company of C$6,000,000 (the “Offering”). Participants in the Offering include Eric Sprott, certain funds managed by Sprott Asset Management LP, Pat DiCapo and David D’Onofrio.

Pursuant to the Investor Rights Agreement between the Company and Agnico Eagle Mines Limited (TSX: AEM, NYSE: AEM) (“Agnico”) dated December 13, 2016, Agnico has indicated that it intends to maintain its 17.1% interest in the Company. Additionally, pursuant to the Investor Rights Agreement between the Company and Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross”) dated June 14, 2017, Kinross has indicated that it intends to maintain its 17.1% interest in the Company.

“We are very grateful for the continued support of our major shareholders and excited to welcome Eric Sprott as a new shareholder. We look forward to commencing our 2020 field season where we will follow up on some exciting new discoveries and look to continue to increase our existing mineral resources. We are finalizing the details of our 2020 work campaign which is expected to be announced in the coming weeks,” stated David D’Onofrio, Chief Executive Officer.

The gross proceeds received from the sale of the Shares will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act (Canada) (the “Tax Act”) on the Company’s properties in the White Gold District of the Yukon Territory, and renounced to subscribers in the Offering effective December 31, 2020. Such Canadian exploration expenses will also qualify as “flow-through mining expenditures” as defined in subsection 127(9) of the Tax Act.

Participation by Agnico and Kinross, Messrs. DiCapo and D’Onofrio, and any other insiders of the Company (collectively, the “Insiders”), in the Offering will be considered a “related party transaction” pursuant to Multilateral Instrument 61- 101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company will be exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insiders’ participation in the Offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101. A material change report will be filed in connection with the participation of Insiders in the Offering less than 21 days in advance of the closing of the Offering, which the Company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.