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Wesdome Gold Mines (TSX: WDO) is buying 10.6% equity stake in Angus Gold (TSXV: GUS), whose flagship project is right next to its Eagle River mine, through the participation of a flow-through unit offering announced by Angus Friday.
The units are being priced at C$0.80, each comprising one Angus common stock and one-half of a share purchase warrant. The exercise price of warrants is also set at C$0.80, valid for a period of 24 months from the closing date.
Should Wesdome exercise these warrants in full, its share ownership in Angus would rise to 15%.
The Toronto-headquartered gold producer now joins two other Angus shareholders, Delbrook Capital Advisors and New Gold (TSX: NGD), who each hold 16.4% and 9.9% equity ownerships, respectively.
In total, Angus is expected to raise gross proceeds of approximately C$4.64 million, which will be used for the company’s exploration activities in Ontario.
Angus’ 100% owned Golden Sky project in Wawa, Ontario, is located within the same greenstone belt that hosts the high-grade Eagle River and the Mishi open-pit gold mines of Wesdome.
The 261 sq. km. project is host to the near-surface Dorset gold zone, which contains a historic estimated resource of 40,000 oz. of gold (780,000 tonnes grading 1.4 g/t gold) in the indicated category and 180,000 oz. of gold (4.76 million tonnes grading 1.2 g/t gold) in the inferred category.
“We are excited to welcome Wesdome as a strategic investor in Angus Gold. Our ability to draw on their knowledge and experience in the area will be invaluable as we continue to advance our Golden Sky project,” Angus CEO Breanne Beh said in a news release.
“This investment not only validate the exploration potential at Golden Sky, but also provides the financial support to execute robust exploration programs throughout 2024 and into 2025,” she added.
Shares of Angus Gold surged by 9.1% as of 11:30 a.m. ET following the private placement announcement. The company’s market capitalization stood at C$29.5 million ($21.9m).
