Vancouver-based Westhaven Ventures, has announced that it intends to complete a non-brokered private placement to raise gross proceeds of up to $7,350,000.
Commenting on this round of financing, Gareth Thomas, President & CEO of Westhaven, said this will allow the company to expand drilling at the high-grade Shovelnose gold property with flexibility to explore additional regional targets as warranted.
Westhaven benefits from the B.C. Mining Exploration Tax Credit (METC) which is a permanent incentive to support investment in mining. The METC is a refundable B.C. income tax credit for eligible individuals and corporations conducting grassroots mineral exploration in B.C. and is worth 30% of qualified mining exploration expenditures. Referring to the METC, Mr Thomas said that “Westhaven is eligible for a 30% income tax credit on every non flow-through dollar spent on qualified mining exploration expenditures on its properties.”
The private placement will consist of up to 7,000,000 units at a price of $1.05 per unit. Each unit is comprised of one common share and one non-transferable half warrant (the “half warrant”). Each full warrant entitles the holder to purchase one common share at a price of $1.50 for a period of 24 months from the closing date of the private placement. Proceeds of the private placement will be used for funding the expansion of the ongoing work program at the Shovelnose gold property, working capital purposes and/or work related to the company’s portfolio of properties located in British Columbia, Canada.
Existing directors and officers of Westhaven may choose to participate in the private placement. Participation of insiders of the company in the private placement constitutes a related-party transaction as defined under Multilateral Instrument 61-101. Because the company’s shares trade only on the TSX Venture Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(a) of MI 61-101.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions there from. The information in this article is derived from Westhaven press release, and therefore does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
The private placement is subject to TSX Venture Exchange approval. Westhaven may pay finders’ fees to eligible finders, as permitted by applicable securities laws and the rules of the TSX-V. All securities issued in the Offering are subject to a four-month hold period, during which time the securities may not be traded.
This new release contains forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. We do not assume any obligation to update any forward-looking statements, other than as required by securities laws.
About the Shovelnose Gold Project
The 15,542 ha Shovelnose property is located near the southern end of the Spences Bridge Gold Belt (SBGB), approximately 30 km south of Merritt, British Columbia. The property is accessible by the Coquihalla Highway (BC Provincial Highway #5) at the Coldwater exit, then by a series of logging roads to the northern and southern portions of the property.
The Shovelnose claims cover prospective stratigraphy in the southern SBGB, a 110 km northwest–trending belt of intermediate to felsic volcanic rocks dominated by the Cretaceous Spences Bridge group. These relatively underexplored volcanic rocks are highly prospective for epithermal style gold mineralization. Low-sulphidation epithermal gold quartz veins occur throughout the range of Spences Bridge Group stratigraphy. Westhaven has a 100% interest in this property subject to a 2% NSR. Westhaven has the option to purchase to purchase 1% of the 2%NSR back for $500,000.
As of 2019, Westhaven has drilled 69 holes for a grand total of 18,212 metres of diamond drilling across the entire property focused in five separate target areas; the Line 6 Zone, Mik Zone, Tower Zone, Alpine Zone and the recently discovered South Zone.
2018 Exploration Highlights Include:
- The strike length of the newly discovered South Zone is 720 metres and is open to northwest, northeast and southeast.
- 8 of the 22 recently completed diamond drill holes contained visible gold (VG).
- Drill Holes SN18-12, SN18-14, SN18-15 and SN18-21 all intersected high-grade gold above 100 gram-metres.
- Two separate sub-parallel high-grade gold veins/zones have been intersected in multiple holes.
Westhaven Ventures – Summary
- 35,000 hectare land package on underexplored gold belt with district-scale potential; gold mineralization throughout the belt
- Road accessible and close to major highways; equates to cost-effective exploration
- New high-grade discovery at Shovelnose; follow-up drill program to begin in November
- Team has a track record of discovery(Aber, Diavik, Polaris, Thor Lake, Silvertip, Canadian Mining Hall of Fame, AMEBC H.H.“Spud” Huestis Award)
- Management has a large equity position (~40%)
Find out more at https://www.westhavenventures.com/