Westhaven Gold Corporation (TSX-V: WHN) has reported completing the royalty sales and private placement that was previously announced. President and CEO Gareth Thomas declared: “These funds will enable Westhaven to conduct a great deal of exploratory digging and drilling on our Spences Bridge Gold Belt properties.” As per the news release published by Westhaven on Wednesday, September 14th, the Company entered into a deal with Franco-Nevada Corporation (NYSE: FNV), a renowned gold-focused royalty and streaming business. The income generated from the Private Placement and the NSR and Talisker Royalty sales will be employed for exploration activities in Spences Bridge Gold Belt properties and for other general corporate purposes. The approval of the TSX Venture Exchange is still pending, and all securities that were a part of the Private Placement will be subject to a statutory holding period under applicable securities regulations and the rules and policies of the TSXV, expiring on February 7th, 2023.
Westhaven has successfully finalized the granting and selling of a 2% net smelter return royalty to Franco-Nevada for $6,000,000. This NSR applies to Westhaven’s claims in the Spences Bridge Gold Belt located in southwestern British Columbia, Canada. Additionally, Westhaven can purchase 0.5% of the NSR for US$3,000,000 for a duration of five years after the closure of the transaction. Furthermore, Westhaven has sold a 2.5% net smelter return royalty to Franco-Nevada for US$750,000, initially granted by Sable Resources Ltd. in Westhaven’s news release on October 16th, 2018.
Furthermore, Franco-Nevada purchased 2,500,000 shares of the Company at C$0.40 each, accumulating a total of C$1,000,000. Westhaven owns four gold and silver mines in the Spences Bridge Gold Belt in southwestern British Columbia, which add up to more than 37,000 hectares. In January 2022, Westhaven announced an estimate of 841,000 indicated ounces at 2.47 g/t gold equivalent and 277,000 inferred ounces at 0.94 g/t gold equivalent for the Shovelnose Gold property, where drilling activities are still underway.
Westhaven takes full advantage of the long-term BC Mining Exploration Tax Credit, a refundable income tax credit available to companies and individuals that explore minerals in the province. This credit covers up to 30% of qualified mining expenditures, and Westhaven is eligible to receive the full amount due to its properties in a mountain pine beetle-affected region.