Westhaven Announces C$5.0 Million Bought Deal Private Placement of FlowThrough Common Shares
25 May 2020 - 10:11PM
Westhaven Ventures Inc. (“Westhaven” or the "Company") (TSX-V:WHN)
is pleased to announce that it has entered into an agreement with
PI Financial Corp., as lead underwriter and on behalf of a
syndicate of underwriters (collectively, the “Underwriters”),
pursuant to which the Underwriters shall purchase 5,264,000 common
shares that qualify as “flow-through shares” of the Company for the
purposes of the Income Tax Act (Canada) (the “Flow-Through Common
Shares”) at a price of C$0.95 per Flow-Through Common Share, on a
“bought deal” private placement basis, for aggregate gross proceeds
to the Company of approximately C$5.0 million (the “Offering”).
The Company has also granted the Underwriters an option to
purchase up to an additional 1,052,800 Flow-Through Common Shares
at the offering price up to the Closing Date.
The gross proceeds from the Offering will be
used to incur “Canadian exploration expenses” (within the meaning
of the Income Tax Act (Canada)) and “BC flow-through mining
expenditures” (within the meaning of the Income Tax Act (British
Columbia)), related to Westhaven’s projects in British Columbia,
Canada. The Company will renounce these expenses to the purchasers
with an effective date of no later than December 31, 2020.
The Offering is scheduled to close on or about
June 16, 2020 and is subject to certain conditions including, but
not limited to, the receipt of all necessary regulatory and other
approvals including the approval of the TSX Venture Exchange. The
Flow-Through Common Shares will be subject to a four month hold
period from the date of closing of the Offering.
In consideration for their services, the
Underwriters will receive a cash commission equal to 5.0% of the
gross proceeds of the Offering, including any proceeds realized
from the exercise of the Underwriters’ option.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws
and may not be offered or sold within the United States or to or
for the account or benefit of a U.S. person (as defined in
Regulation S under the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
About Westhaven:
Westhaven is a gold-focused exploration company,
currently advancing the high-grade discovery on the Shovelnose
project in Canada’s newest gold district, the Spences Bridge Gold
Belt. Westhaven controls 37,000 hectares (370 square kilometres)
with four 100% owned gold properties spread along this
underexplored belt. The Shovelnose property is situated off a major
highway, in close proximity to power, rail, large producing mines,
and within commuting distance from the city of Merritt,. Westhaven
is committed to the highest standards of environmental and social
responsibility with a focus on generating positive outcomes and
returns to all stakeholders. Westhaven trades on the TSX
Venture Exchange under the ticker symbol WHN.
On behalf of the Board of
Directors
WESTHAVEN VENTURES INC.
"Gareth Thomas"
Gareth Thomas, President, CEO & Director
For further information, please call
604-336-6921 or visit Westhaven’s website
at www.westhavenventures.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary note regarding
forward-looking statements
This news release contains certain "forward
looking statements" and certain "forward-looking information" as
defined under applicable Canadian and U.S. securities laws.
Forward-looking statements and information can generally be
identified by the use of forward-looking terminology such as "may",
"will", "should", "expect", "intend", "estimate", "anticipate",
"believe", "continue", "plans" or similar terminology. The
forward-looking information contained herein is provided for the
purpose of assisting readers in understanding management's current
expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes.
Forward-looking statements and information
include, but are not limited to, statements in respect of the
proposed Offering including the proposed use of proceeds, the
closing date of the Offering and receipt of regulatory and stock
exchange approvals.
Forward-looking information is subject to known
and unknown risks, uncertainties and other factors that may cause
the actual actions, events or results to be materially different
from those expressed or implied by such forward-looking
information, including but not limited to: the requirement for
regulatory approvals; enhanced uncertainty in global financial
markets as a result of the current COVID-19 pandemic;
unquantifiable risks related to government actions and
interventions; stock market volatility; regulatory restrictions;
and other related risks and uncertainties.
Forward-looking information are based on
management of the parties' reasonable assumptions, estimates,
expectations, analyses and opinions, which are based on such
management's experience and perception of trends, current
conditions and expected developments, and other factors that
management believes are relevant and reasonable in the
circumstances, but which may prove to be incorrect.
Westhaven undertakes no obligation to update
forward-looking information except as required by applicable law.
Such forward looking information represents management's best
judgment based on information currently available. No
forward-looking statement can be guaranteed and actual future
results may vary materially. Accordingly, readers are advised not
to place undue reliance on forward-looking statements or
information.
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