Western Copper and Gold Corporation (WRN.TO, WRN) announced a strategic equity investment by Mitsubishi Materials Corporation to further advance Western's copper-gold Casino Project in the Yukon. Mitsubishi Materials has agreed to acquire that number of common shares of Western that will represent approximately 5.0% 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. Also, the company and Mitsubishi Materials will enter into an investor rights agreement.
Assuming Rio Tinto elects to exercise its participation right in full, 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.
Western remains the sole owner of the Casino Project. The company will use the proceeds to advance the project and to fund specific areas of study, developed with input from Mitsubishi Materials.
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