Western Gold closes $2.74-million private placement

Executive Summary

• Western Gold Exploration Ltd. has completed a non-brokered private placement raising aggregate proceeds of $2,742,249.
• The company issued 20,312,962 common shares at a price of 13.5 cents per share.
• Net proceeds are designated for exploration drilling programs, related work on mining properties, and general and administrative expenses.

Key Details

• Total Gross Proceeds: $2,742,249
• Shares Issued: 20,312,962 common shares
• Price Per Share: $0.135 CAD
• Use of Proceeds: Exploration drilling programs, related work on mining properties, and general and administrative expenses.
• Hold Period: The shares are subject to a four-month hold period from the closing date in accordance with applicable securities laws.
• Finder’s Fees:
  • Haywood Securities Inc.: $21,937.50 (cash)
  • Canaccord Genuity Corp.: $2,700 (cash)
• Related-Party Transactions:
  • Ross McLellan (CEO/Director): Acquired 274,000 shares for an aggregate subscription price of $36,990.
  • Zila Corp. (Insider >10% holder): Acquired 3,703,704 shares for an aggregate subscription price of $500,000.
• Regulatory Context: The related-party transactions were exempt from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, as the fair market value was not more than 25% of market capitalization, the distribution was for cash, and the fair market value was not more than $2.5 million.
• Filing Delay: The company did not file a material change report more than 21 days before closing because related-party participation details were not settled until shortly prior to closing, allowing for an expedited closure.