CPE News (7/22/2020) – West Vault Mining Inc. (TSX-V: WVM) has entered into an agreement with Haywood Securities Inc. and PI Financial Corp. as co lead-agents for a brokered private placement, on commercially reasonable efforts, of up to 4,800,000 common shares at $1.15 for gross proceeds of up to $5,520,000.
West Vault intends to complete a concurrent non-brokered private placement with two major shareholders, Sun Valley Gold LLC and Ruffer LLP, to raise an additional $10,183,250 through the issuance of 8,855,000 common shares at the offering price.
Vancouver based West Vault is focused on advancing the Hasbrouck Gold Project in Tonopah, Nevada. The company owns a 75% interest in, and a 1.1% net smelter return royalty over, the Hasbrouck Gold Project. It has entered into definitive agreements for the purchase of the remaining 25% interest from Clover Nevada LLC, a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman, LP.
West Vault will pay US $10 million in cash and issue 1 million common shares to Waterton on the closing of the transaction.
Proceed of the financings will be used to fund the cash portion of the acquisition, the continued work on the Hasbrouck Gold Project, and for general working capital purposes.
The Hasbrouck Gold Project, comprised of the planned Three Hills Mine and the nearby planned Hasbrouck Mine, hosts an estimated 762,000 ounces of proven and probable gold reserves and 10,569,000 ounces of proven and probable silver reserves (proven reserves of 6,242,00 tons at a grade of 0.02 Au oz/ton plus 0.41 Ag oz/ton and probable reserves of 39,028,000 tons at a grade of 0.016 Au oz/ton plus 0.205 Ag oz/ton).
Sun Valley Gold LLC and Ruffer LLP currently control 48% and 17% of West Vault Mining common shares respectively.
photo credit: West Vault
Not for dissemination in the United States or to United States newswire services
WEST VAULT ANNOUNCES PRIVATE PLACEMENT FINANCINGS TO RAISE UP TO $15.7 MILLION TO CONSOLIDATE HASBROUCK GOLD PROJECT
VANCOUVER, BRITISH COLUMBIA, July 22, 2020 – West Vault Mining Inc. (WVM:TSXV) (“West Vault” or the “Company”) is pleased to announce that it has entered into an agreement with Haywood Securities Inc. and PI Financial Corp. as co lead-agents (collectively, the “Agents”), who have agreed to sell, on a commercially reasonable efforts private placement basis, up to 4,800,000 common shares of the Company (the “Offered Shares”) at a price of $1.15 per Offered Share (the “Issue Price”), for aggregate gross proceeds of up to $5,520,000 (the “Brokered Offering”). In addition, West Vault intends to complete a concurrent non-brokered private placement of common shares of the Company with two major shareholders (the “Non-Brokered Private Placement”) to raise an additional $10,183,250 through the issuance of 8,855,000 common shares at the Issue Price for aggregate gross proceeds of $15,703,250. All amounts herein are reported in Canadian dollars.
The Company has granted the Agents an option (the “Over-Allotment Option”), exercisable in whole or in part by the Agents, to sell up to an additional 15% of the Offered Shares sold on the same terms as the Brokered Offering until the closing date of the Brokered Offering (the “Closing Date”).
The Company intends to use the net proceeds of the Brokered Offering and the Non-Brokered Private Placement (together the “Financings”) to fund the cash consideration payable to complete the purchase of a 25% interest in the Hasbrouck Gold Project (also announced today under separate news release), to fund continued work on the Hasbrouck Gold Project and for general working capital purposes.
The Agents will be paid a cash fee equal to 6% of the gross proceeds from the sale of the Offered Shares, including Offered Shares issued pursuant to the exercise of the Over-Allotment Option, if any, and will also receive non-transferable warrants upon closing of the Brokered Offering entitling them, for a term of 24 months, to purchase common shares equal to 6% of the aggregate number of Offered Shares issued at an exercise price per share equal to the Issue Price.
The Financings are subject to the approval of the TSX Venture Exchange (the “Exchange”) and all of common shares issued will bear a four-month and one day resale restriction from the Closing Date, which the Company anticipates will occur shortly after receipt of Exchange approval.
The Financings have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
West Vault is focused on advancing the Hasbrouck Gold Project in Tonopah, Nevada. The Company owns a 75% interest in, and a 1.1% net smelter return royalty over, the Hasbrouck Gold Project and has announced today the execution of definitive agreements for the purchase of the remaining 25% interests from Clover Nevada LLC, a wholly owned subsidiary of Waterton Precious Metals Fund II Cayman, LP (“Waterton”). The Company is working towards completing full permitting for the Hasbrouck Gold Project’s reserves while keeping corporate G&A costs lean and efficient.
The Hasbrouck Gold Project, comprised of the planned Three Hills Mine and the nearby planned Hasbrouck Mine, hosts an estimated 762,000 ounces of proven and probable gold reserves and 10,569,000 ounces of proven and probable silver reserves (proven reserves of 6,242,00 tons at a grade of 0.02 Au oz/ton plus 0.41 Ag oz/ton and probable reserves of 39,028,000 tons at a grade of 0.016 Au oz/ton plus 0.205 Ag oz/ton). For details see the “Technical Report and Updated Preliminary Feasibility Study: Hasbrouck and Three Hills Gold-Silver Project, Esmeralda County, Nevada” dated September 14, 2016 as filed on SEDAR at www.sedar.com.
Sandy McVey, P. Eng., Chief Operating Officer for the Company, as a non-independent Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), has reviewed and approved the technical information disclosed in this news release.
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.
On behalf of West Vault Mining Inc.
“R. Michael Jones”
Chief Executive Officer
FOR FURTHER INFORMATION PLEASE CONTACT:
R. Michael Jones, Chief Executive Officer T: (604) 685 8311
Please see the Company’s website at www.westvaultmining.com or contact us by email at firstname.lastname@example.org.
- CPP Investments appoints John Graham, Head of Credit Investments, as new CEO - February 26, 2021
- Outcast Foods secures $10M financing led by District Ventures - February 26, 2021
- Future Fields secures $2.2M seed financing led by Bee Partners - February 25, 2021