Western Copper and Gold Corporation has agreed to invest another CA$6m (US$4.4m) through an investor rights deal with Rio Tinto Canada. The two will continue to partner on the company’s casino project in the Yukon.
Under the terms of the amended agreement, Western will continue to function as the casino project’s sole owner and operator.
Rio Tinto said it will buy 3,468,208 common shares for CA$1.73 per share. Aggregate gross proceeds would reach nearly C$6m, which would give Rio Tinto control of close to 9.7% of Western's outstanding common shares.
Western Copper and Gold outlined what the company would do with the funds by saying, “The company will use the proceeds of this further investment to fund specific areas of study, specifically around providing infrastructure for the casino project, and streamlining the regulatory process, with the aim of progressing through permitting to a development phase for the Casino Project.”
Company President and CEO Paul West-Sells took a moment to express the company’s excitement to further collaborate with Rio Tinto.
He said, "We are pleased that Rio Tinto has elected to continue to invest and work with Western to advance the Casino Project, with a focus on furthering infrastructure development and streamlining the regulatory process.”
Rio Tinto Chief Executive Bold Baatar further commented on the partnership by saying, "We are pleased to continue to work with Western to advance the Casino Project.”
Both companies expect to close the investment “on or about December 12,” pending necessary regulatory approval. Common shares involved would also “be subject to a statutory hold period in accordance with applicable securities legislation.”
