Western Copper and Gold Corporation has secured an additional C$6 million investment from Rio Tinto Canada Inc. This agreement entails Rio Tinto purchasing 3,468,208 common shares of Western at C$1.73 per share. As a result, Rio Tinto’s stake in Western will increase to approximately 9.7%.
Funding Boost for Casino Project
The proceeds from this investment will support the development of Western’s Casino Project in the Yukon. Western plans to allocate these funds towards infrastructure improvements and facilitating the regulatory process, with the objective of advancing the project towards the development phase.
Revised Agreement Terms with Rio Tinto
The revised investor rights agreement provides Rio Tinto with specific privileges for an 18-month period post-investment. These include appointing a member to the Casino Project’s Technical and Sustainability Committee, an observer role at Western’s board meetings, and the potential to nominate a director if its ownership reaches at least 12.5%. Rio Tinto also gains the right to participate in future Western equity offerings to maintain its ownership percentage and receives registration rights for its shares.
Anticipated Closing and Regulatory Compliance
The investment is expected to be finalized around December 12, 2023, pending regulatory approvals from the Toronto Stock Exchange and NYSE American LLC. The acquired shares will be held under a statutory period as required by securities laws.