Westward Gold raising $5.0 million for Nevada drilling

Westward Gold Inc. [WG-CSE, WGLIF-OTCQB, IM50-FSE] has announced details of a $5.0 million non-brokered private placement, with a $2.5 million lead order from a new cornerstone investor. Proceeds are earmarked for expanded drilling at the company’s Toiyabe Hills property in Nevada and general working capital purposes.

The company said the private placement will consist of up to 45.4 million units priced at 11 cents per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share for 15 cents for 24 months following the closing of the offering.

Westward Gold said it is pleased to welcome its newest major shareholder, Concept Capital Management Ltd. It said Concept will subscribe for 22.7 million units for gross proceeds of $2.5 million. Additionally, existing strategic shareholder Crescat Capital LLC will be subscribing for 9.09 million units, for gross proceeds of approximately $1.0 million.

Westward Gold shares were unchanged at 12 cents, Wednesday. The shares trade in a 52-week range of 16 cents and $0.055.

Westward is a mineral exploration company focused on developing the Toiyabe Hills project located in the Cortez Hills area of Ladner County, Nevada, and the Coyote and Rossi Projects located along the Carlin Trend in Elko County Nevada.

“Toiyabe Hills is a critical part of the well-endowed Cortez gold district of north-central Nevada – yet, prior to Westward’s arrival, it had been historically poorly explored and misunderstood,’’ said Dr. Quinton Hennigh, an internationally renowned economic geologist and technical advisor to Crescat Capital LLC, which holds a substantial equity interest in Westward.

“Westward now holds a commanding land position across much of the Toiyabe Range,’’ Hennigh said.

Westward said an expanded drilling program is already under way at Toiyabe Hills, where the company plans to complete a 5,000-metre program across up to 10 holes.

“We’re thrilled to welcome Concept Capital as a new cornerstone investor in Westward, at an inflection point for our company,’’ said Westward Chief Financial Officer Andrew Nelson.  “This new capital – in addition to continued support from existing strategic shareholder Crescat – will allow us to keep the drills turning at Toiyabe Hills for as long as weather permits.’’ “We will be in a position of greater strength both in terms of date acquired and our treasury as we move into the winter months.’’

The offering will not result in the creation of a new control person at the company, as the warrants are not exercisable if such exercise would result in the holder, together with any person or company acting jointly or in concert with the holder, owning, or exercising discretion, over 20% or greater of the company’s outstanding shares.