West Point closes $25-million private placement

Executive Summary

• West Point Gold Corp. has closed a private placement raising approximately C$25 million in gross proceeds.
• The financing was conducted at $1.10 per share, resulting in the issuance of 22,727,300 common shares to SCP Resource Finance LP and other agents.
• The net proceeds are designated for the exploration and advancement of the company's Gold Chain project in Arizona, as well as for general corporate and working capital purposes.

Key Details

• Gross Proceeds: Approximately C$25 million.
• Share Price: $1.10 per common share.
• Shares Issued: 22,727,300 common shares.
• Lead Agent: SCP Resource Finance LP.
• Other Agents: ATB Cormark Capital Markets, Red Cloud Securities Inc., Paradigm Capital Inc., and Canaccord Genuity Inc.
• Agent Compensation (Cash):
  • Aggregate cash commission of $837,470 (5% of gross proceeds).
  • Reduced commission of 2% applied to shares sold to purchasers on the company president's list.
  • Advisory fee of $34,741.
• Agent Compensation (Equity):
  • SCP Resource Finance and Red Cloud Securities elected to receive 50% of their cash commission in shares, totaling 264,162 shares.
  • Issuance of 1,045,456 broker warrants (equal to 5% of shares sold, excluding shares sold to the president's list).
  • Warrant Terms: Each warrant is exercisable to purchase one share at $1.10 until February 19, 2028.
• Use of Proceeds: Exploration and advancement of the Gold Chain project in Arizona, USA, and general corporate/working capital purposes.
• Lock-up Period: All shares, agent option shares, broker warrants, and warrant shares are subject to a statutory hold period expiring June 20, 2026.
• Insider Participation:
  • Directors Andrew Bowering, Anthony Paterson, and Conrad Nest participated in the offering.
  • Insiders acquired 659,600 shares for a total of $725,560.
  • Transaction classified as a related-party transaction under Multilateral Instrument 61-101.
  • Exempt from formal valuation and minority shareholder approval requirements as insider participation did not exceed 25% of market capitalization.
• Regulatory Status: Offering subject to final acceptance of the TSX Venture Exchange.