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Wellgreen Platinum (TSX:WG) has entered agreements with investors including Resource Capital Fund VI L.P. and Australind Limited for a financing package for approximately C$11.4 million.
Wellgreen Platinum (TSX:WG) has entered agreements with investors including Resource Capital Fund VI L.P. and Australind Limited for a financing package for approximately C$11.4 million.
As quoted in the press release:
The aggregate financing package consists of a US$2.5 million or C$3.3 million1 non-brokered equity private placement and the sale by Wellgreen Platinum of a 1.0% Net Smelter Returns Royalty on future production from the Wellgreen property (“NSR Royalty”) for proceeds of US$6.2 million or C$8.1 million1. With these agreements in place, the Company has initiated the second phase of its 2015 exploration drill program at Wellgreen and expects to undertake a comprehensive metallurgical testing program starting in Q1 2016.
Greg Johnson, Wellgreen president and CEO, said:
We are very pleased to be adding RCF and an affiliate of Alverstoke as shareholders of Wellgreen Platinum. This is an important development for the Company as it brings in the funding to continue to advance our pre-feasibility level studies during a period of very challenging market conditions for the mining sector. The 2015 Wellgreen PEA demonstrated that our Wellgreen project has the potential to become a low cost, mid-tier level producer of PGMs and nickel, with average annual production of over 200,000 ounces of platinum, palladium and gold along with over 120 million pounds of combined nickel and copper during its first 16 years of operation. We believe that with the financial resources and mining industry expertise that RCF and Alverstoke are able to contribute, along with the support from our existing shareholders, we can further realize the potential value of the Wellgreen deposit through continued advancement toward production.