West Point Gold (WPG.V) recently increased the size of its private placement to C$25M with SCP Resource Finance acting as lead agent for a syndicate of agents. The proceeds of this financing will be used to continue to aggressively advance the flagship Gold Chain project in Arizona.
The company will likely receive close to C$23.5M in net proceeds as the finders fee was limited to 5% (and just 2% on the president’s list) with the agent having the option to elect up to 50% of its cash commission to be settled in shares at the C$1.10 issue price. Other than broker warrants, this is a warrant-free financing, and the C$1.10 shares are subject to the traditional four month hold period.
Disclosure: The author has a long position in West Point Gold. West Point is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
