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鈥檚 exploration activities in Ontario.
Angus鈥� 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.
鈥淲e 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,鈥� Angus CEO Breanne Beh said in a news release.
鈥淭his 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,鈥� she added.
Shares of Angus Gold surged by 9.1% as of 11:30 a.m. ET following the private placement announcement. The company鈥檚 market capitalization stood at C$29.5 million ($21.9m).