Westhaven Gold receives $2.3M investment from Sprott, EarthLabs

[Redator]

Westhaven Gold (TSXV: WHN) is set to receive an investment of C$3.16 million ($2.3 million) through a private placement with Canadian mining billionaire Eric Sprott as well as EarthLabs (TSXV: SPOT).

In total, the Vancouver-headquartered gold explorer will issue approximately 8.33 million units at C$0.12 per unit and 12.5 million charitable flow-through units at C$0.1728 each. The units all contain one common share of Westhaven and one-half of a share purchase warrant exercisable at C$0.18.

Westhaven Gold opened Monday’s session at C$0.16 apiece, with a market capitalization of C$28.2 million ($20.8 million). For the past 52 weeks, the stock traded between C$0.085 and C$0.21.

“We are pleased to welcome Eric Sprott as a new shareholder of Westhaven, as well as the continued support of Earthlabs,” Westhaven’s CEO Ken Armstrong stated, adding that this financing “represents a strong endorsement” of the company’s approach to advance its properties in the Spences Bridge gold belt of southern British Columbia.

The company controls approximately 615 sq. km. within four properties spread along this underexplored belt, with the Shovelnose gold-silver project being the most advanced.

Since inception in 2011, Westhaven has completed 186,000 metres of diamond drilling at the Shovelnose property, delineating a gold resource of nearly 1 million oz. across three zones. A 3,000-metre program is currently underway to drill test targets outside the existing resource.

In March, Westhaven released a new preliminary economic assessment for Shovelnose that validated the project’s potential as low-cost underground gold mine, with average annual production of 56,000 oz. over an 11-year life.

The PEA, using $2,400/oz. gold and $28/oz. silver as base parameters, gave the project a C$454 million after-tax net present value (at 6% discount) and an internal rate of return of 43.2%.