Wesdome Establishes At-The-Market Equity Program
03 December 2022 - 12:14AM
Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces it has established an at-the-market equity program
(the “ATM Program”) allowing Wesdome to issue and sell up to $100
million common shares from treasury (the “Common Shares”) to the
public from time to time at the Company’s sole discretion and at
the prevailing market price. Sales of the Common Shares under the
ATM Program will be made pursuant to the terms of an equity
distribution agreement (the “Distribution Agreement”) dated
December 2, 2022 entered into among the Company and a syndicate of
agents including National Bank Financial, BMO Capital Markets and
Desjardins Capital Markets (collectively, the “Agents”). The volume
and timing of distributions under the ATM Program, if any, will be
determined at the Company’s sole discretion, subject to applicable
regulatory limitations.
The Company currently intends to use the net
proceeds, if any, from the ATM Program to repay indebtedness, for
working capital, and general corporate purposes. In addition to its
cash on hand and its recently upsized $150 million revolving credit
facility, the ATM Program will provide Wesdome with a flexible tool
to efficiently access the capital markets, opportunistically as
needed, in order to continue executing on its growth strategy.
Management of the Company will have discretion with respect to the
actual use of the net proceeds of the ATM Program.
All Common Shares sold pursuant to the ATM
Program will be sold through the Toronto Stock Exchange (the “TSX”)
or on any other “marketplace” within the meaning of National
Instrument 21-101 – Marketplace Operation upon which the Common
Shares are listed or quoted or where the Common Shares are traded
in Canada, at prices related to prevailing market price at the time
of sale. Since the Common Shares will be distributed at the
prevailing market prices at the time of the sale or certain other
prices, prices may vary among purchasers and during the period of
distribution. The TSX has conditionally approved the listing of the
Common Shares that may be sold under the ATM Program.
The offering of Common Shares under the ATM
Program is qualified by a prospectus supplement dated December 2,
2022 (the “Prospectus Supplement”), which supplements the Company’s
short form base shelf prospectus dated November 25, 2022 (the “Base
Shelf Prospectus”), which have been filed in each of the provinces
and territories of Canada. A copy of the Prospectus Supplement, the
Base Shelf Prospectus and the Distribution Agreement will be
available on our SEDAR profile at www.sedar.com. Alternatively, a
copy of the Prospectus Supplement and accompanying Base Shelf
Prospectus are available upon request by contacting National Bank
Financial Inc., Attention: Gavin Brancato, by e-mail at
gavin.brancato@nbc.ca or by phone at (416) 869-3707.
No securities regulatory authority has either
approved or disapproved of the contents of this news release. The
Common Shares have not been registered under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”) or
any state securities laws. Accordingly, the Common Shares may not
be offered or sold within the United States unless registered under
the U.S. Securities Act and applicable state securities laws or
pursuant to exemptions from the registration requirements of the
U.S. Securities Act and applicable state securities laws. This news
release does not constitute an offer to sell or a solicitation of
an offer to buy any securities of Wesdome in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
ABOUT WESDOMEWesdome is a
Canadian focused gold producer with two high grade underground
assets in Canada, the Eagle River mine in Ontario and the recently
commissioned Kiena mine in Quebec. The Company also retains
meaningful exposure to the Moss Lake gold deposit in Ontario
through its equity position in Goldshore Resources Inc. The
Company’s primary goal is to responsibly leverage this operating
platform and high-quality brownfield and greenfield exploration
pipeline to build Canada’s next intermediate gold
producer. Wesdome trades on the Toronto Stock Exchange under
the symbol “WDO,” with a secondary listing on the OTCQX under the
symbol “WDOFF.”
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking
information” which may include, but is not limited to, statements
with respect to the distribution of Common Shares under the ATM
program and the benefits associated therewith. Often, but not
always, forward-looking statements can be identified by the use of
words such as “plans”, “expects”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or
“believes” or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Forward-looking statements contained herein are made as
of the date of this press release and the Company disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. The
Company undertakes no obligation to update forward-looking
statements if circumstances, management’s estimates or opinions
should change, except as required by securities legislation.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements.
For further information, please
contact:
Duncan Middlemiss President and
CEO 416-360-3743 ext.
2029duncan.middlemiss@wesdome.com
or
Lindsay Carpenter DunlopVP Investor
Relationslindsay.dunlop@wesdome.com416-360-3743 ext. 2025
220 Bay St, Suite 1200Toronto, ON, M5J 2W4
Toll Free: 1-866-4-WDO-TSXPhone: 416-360-3743,
Fax: 416-360-7620Website: www.wesdome.com
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