Westhaven Announces Bought Deal Public Offering of C$10 Million

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, Jan. 13, 2021 (GLOBE NEWSWIRE) -- Westhaven Gold Corp. (TSX-V:WHN) (“Westhaven” or the “Company”) has today entered into an agreement with Raymond James Ltd. (the “Underwriter”) pursuant to which the Underwriter has agreed to purchase, on a “bought deal” basis, 14,300,000 units of the Company (the “Units”) at a price of $0.70 per Unit, representing total gross proceeds of C$10 million (the “Offering”).

Each Unit will consist of one common share of the Company and one-half common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of the Company for an exercise price of $1.00 per share.

‎The Company has agreed to grant Raymond James Ltd. an option (the "Over-Allotment Option"), exercisable in whole or in part at the sole discretion of the Underwriter, at any time for a period of 30 days from and including the closing of the Offering, to purchase from the Company up ‎to an additional 15% of the Units sold under the Offering, on the same terms and conditions of the Offering to cover ‎over-allotments, if any, and for market stabilization purposes.

The net proceeds from the Offering will be used to fund the exploration and development of the Company’s mining properties in British Columbia including Shovelnose, drilling to complete a maiden resource estimate, working capital and general corporate purposes.

The Units will be offered by way of short form prospectus in each of the provinces of Canada (except the Province of Quebec), pursuant to National Instrument 44-101 – Short Form Prospectus Distributions. The Units will not be offered or sold in the United States except under Rule 144A or in such other manner as to not require registration under the United States Securities Act of 1933, as amended.

The Offering is scheduled to close on or before February 4, 2021 and is subject to certain conditions including, but not limited to, receipt of all regulatory approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

Westhaven benefits from the B.C. Mining Exploration Tax Credit (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 is worth 30% of qualified mining exploration expenditures.