Mitsubishi Materials invests in Western Copper and Gold Corporation
by CM staff
Western remains the sole owner of the Casino Project and will continue to be the operator.
VANCOUVER — Western Copper and Gold Corporation announced an equity investment by Mitsubishi Materials Corporation to advance the company’s copper-gold Casino Project in the Yukon.
Mitsubishi Materials has agreed to acquire that number of common shares of the company that will represent approximately 5.0 per cent of Western’s issued and outstanding shares, on an undiluted basis, following completion of the investment, at a price of C$2.63 per Share.
The exact number of shares to be issued, and proceeds to be received, by the company will depend on whether Rio Tinto Canada Inc. (Rio Tinto) elects to exercise its pre-existing right to participate on a pro rata basis in equity financings by the Company to maintain its current ownership interest, which based on public filings is approximately 7.84 per cent.
Assuming Rio Tinto elects to exercise its participation right in full, then it is expected that 8,091,390 shares will be issued to Mitsubishi Materials for aggregate gross proceeds of C$21.3 million and 878,809 Shares will be issued to Rio Tinto for aggregate gross proceeds of C$2.3 million.
“We are pleased to welcome Mitsubishi Materials as a strategic investor in the Company,” said Paul West-Sells, President and CEO. “The investment by Mitsubishi Materials is a strong endorsement of the Casino Project. We look forward to working with Mitsubishi Materials to advance Casino.”
Western remains the sole owner of the Casino Project and will continue to be the operator. The company will use the proceeds of the strategic investment to advance the project and to fund specific areas of study, developed with input from Mitsubishi Materials, with the aim of progressing to a development phase for the Casino Project.
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