Westward Gold raises $3.6 million to drill its Nevada gold project
What's the deal? Westward GoldDealroom has a profile for this one. Try Dealroom → has launched a non-brokered private placement to raise up to C$5 million (roughly $3.6 million), with strategic shareholders Crescat CapitalDealroom has a profile for this one. Try Dealroom → and Concept Capital Management committing a combined C$2.5 million as lead subscribers. The offering covers up to 20,000,000 units at C$0.25 each.
The terms: Each unit includes one common share and half a warrant, with each full warrant exercisable at C$0.40 within 24 months of closing. Crescat is subscribing for C$1.5 million and Concept Capital for C$1 million. Shares and warrants carry a four-month-and-one-day hold period.
What's the endgame? The money will mostly fund drilling and exploration at Westward Gold's flagship Toiyabe Hills Property in Nevada, along the Cortez Trend. That includes trenching, geological mapping, sampling, and geophysical surveys.
The company also plans to raise cash bonding under its existing Plan of Operations with the US Bureau of Land Management, needed for expanded ground disturbance. Remaining proceeds go to general working capital.
Why now? Kevin Smith, founder and chief executive officer of Crescat Capital, said recent high-grade gold drill results underscore the "Carlin-type gold potential" at Toiyabe Hills. The placement marks Crescat's third investment in Westward Gold and confirms it as the company's largest shareholder.
What could go wrong? The closing hinges on regulatory approvals, including from the Canadian Securities Exchange. The company also anticipates paying finder's fees and issuing finder's warrants of up to 7% each, exercisable at C$0.30 within 24 months.
The signal: Even by the modest standards of junior miners, this is a small raise — it lands in the bottom third of comparable rounds by size. But the fact that two institutional backers are funding half of it, and one is doubling down for a third time, points to conviction in the Nevada exploration story rather than headline dollars.
Read more: kalkinemedia.com
Image credit: James St. John
