|Wellgreen Platinum - WG.t is focused on the flagship Wellgreen platinum group metal (PGM) and nickel project, located in the Yukon Territory, Canada.|
WELLGREEN PLATINUM ANNOUNCES $10 MILLION EQUITY INVESTMENT BY ELECTRUM STRATEGIC OPPORTUNITIES FUND L.P.
Wellgreen Platinum Ltd. intends to issue up to 60.5 million units in two separate tranches, at a price of 20 cents per unit, by way of a non-brokered private placement for total gross proceeds of up to $12.1-million. The Units are comprised of one common share in the capital of the Company and one common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one common share of Wellgreen Platinum at a price of $0.27 for a period of five (5) years following the closing of the First Tranche Financing (as defined below) or the Second Tranche Financing (as defined below), as applicable.
In connection with the Private Placement, the Company has entered into an agreement (the "Agreement") to issue a total of 50,000,000 Units to Electrum Strategic Opportunities Fund L.P. ("Electrum") in two tranches. The closing of each tranche is subject to the fulfilment or waiver of certain terms and conditions. Upon closing of the second tranche of the Private Placement (the "Second Tranche Financing") and assuming that a total of 60,500,000 Units are issued in aggregate, Electrum will own a 26.9% equity interest in the Company, or a 40.6% equity interest on a partially diluted basis assuming the exercise of all Warrants acquired by the subscribers of the Private Placement.
John Sagman, Wellgreen Platinum's Interim President & COO, commented, "We are very pleased to announce this substantial equity investment by Electrum. We believe the Company and its shareholders will benefit from Electrum's strong mining expertise as we continue to advance the Wellgreen PGM-nickel project."
The Company intends to issue up to 15,500,000 Units in the first tranche of the Private Placement which is expected to close later this month (the "First Tranche Financing"). Electrum has agreed to subscribe for 14,000,000 Units as part of the First Tranche Financing. Assuming the First Tranche Financing is fully subscribed, Electrum will own a 9.9% equity interest in the Company, or a 17.9% equity interest on a partially diluted basis assuming the exercise of all Warrants acquired by the subscribers of the First Tranche Financing.
Upon completion of the First Tranche Financing, Electrum will have the right to designate an individual as a nominee to the Company's board of directors (the "Board") and will hold a right to participate (the "Pro Rata Right") in any future financing of the Company in order to maintain its pro rata shareholding (assuming for such purpose full exercise of any Warrants held by Electrum). The Pro Rata Right will continue until such time that Electrum no longer holds more than 5% of the then outstanding voting shares of the Company.
Following the closing of the First Tranche Financing, the Company will seek shareholder approval at a special meeting of its shareholders (the "Shareholder Meeting") for the Second Tranche Financing under which the Company will issue up to 45,000,000 Units at the Subscription Price. Electrum has agreed to subscribe for 36,000,000 Units as part of the Second Tranche Financing, subject to, among other things, the Company obtaining shareholder approval. Details of the Shareholder Meeting will be provided in a future news release.
Upon completion of the Second Tranche Financing, Electrum will have the right to designate an additional nominee to the Board. This right will continue until such time that Electrum no longer holds more than 15% of the then outstanding voting shares of the Company.
All securities issued in the Private Placement will be subject to a statutory four month hold period. Closing of the Private Placement is subject to, among other things: (i) completion of satisfactory due diligence by Electrum prior to completion of the First Tranche Financing; (ii) the receipt of all regulatory approvals, including approval of the TSX; and (iii) receipt of shareholder approval at the Shareholder Meeting (for the Second Tranche Financing only). The net proceeds of the Private Placement will be used for the development of the Company's Wellgreen PGM-nickel project in the Yukon and for general corporate purposes.
Wellgreen Platinum Ltd. (TSX: WG; OTC-QX: WGPLF) (“Wellgreen Platinum” or the “Company”) is pleased to announce the completion of its Q4 2015 drilling and field work programs (the “Q4 Program”) at its 100%- owned Wellgreen PGM-Nickel project, located in Canada’s Yukon Territory.
Utilizing diamond core and reverse circulation drill rigs, 5,169 metres were drilled over the Q4 Program, for a total of 9,005 metres completed in 2015. Drilling was undertaken in the Far West, West, Central, East and Far East Zones to test down-dip extensions to known disseminated mineralization, as well as extensions to areas of higher grade mineralization.
Some of the drill core will also be used to gather representative samples of material from geometallurgical domains across the deposit for a metallurgical testing program that will commence shortly with XPS Consulting and Testwork Services, overseen by Eggert Engineering Inc., PF Wells Metallurgical Associates Inc., and Gems Unlimited Consulting Inc.
Assay results from the drill program are pending. The results from the Q4 Program, along with those from the previous two drill campaigns detailed in a news release dated December 21, 2015, are expected to be incorporated into an updated geological deposit model.
John Sagman, Wellgreen Platinum’s Interim President & COO, commented, “The Company is committed to advancing the Wellgreen project in a cost effective manner. With a successful drill program behind us, our focus now shifts to high priority metallurgical and process engineering studies while also continuing environmental baseline, assessment and mitigation studies.”
About Wellgreen Platinum
Wellgreen Platinum is a Canadian mining exploration and development company focused on the active advancement of its 100% owned Wellgreen platinum group metals (PGM) and nickel project. Located in the Yukon Territory of Canada, the 2015 PEA demonstrated that the Wellgreen PGM and nickel project has the potential to become a large, low cost, open pit producer of platinum, palladium, gold, nickel, and copper. The Wellgreen property is accessible from the paved Alaska Highway, which leads to year-round deep sea ports in southern Alaska.