June 24, 2014 – Vancouver, B.C. – Wellgreen Platinum Ltd. (TSX-V: WG, OTC-QX: WGPLF) is pleased to announce that it has completed its previously announced bought deal financing (the “Offering”) led by Dundee Securities Ltd., along with Edgecrest Capital Corporation, Haywood Securities Inc. and Mackie Research Capital Ltd. (collectively, the “Underwriters”), along with H.C. Wainwright & Co., LLC as U.S. Placement Agent. Pursuant to the Offering, 10,615,650 units of the Company (the “Units”) were issued, at a price of C$0.65 per Unit, for total gross proceeds of C$6,900,172, representing the base offering size of 9,231,000 Units and the exercise in full of the over-allotment option for an additional 1,384,650 Units.
The Company will use the net proceeds of the Offering toward initiation of Pre-feasibility studies on its flagship Wellgreen PGM-Nickel-Copper project, to further exploration and development of its properties and for general corporate purposes.
Each Unit consists of one common share (“Share”) of the Company and one common share purchase warrant (“Warrant”). Each Warrant entitles the holder thereof to acquire one Share at a price of $0.90 for a period of 24 months following today’s date. In the event that the Company’s shares trade at a closing price of greater than $1.35 per share for a period of 10 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and, in such case, the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
Greg Johnson, Wellgreen President & CEO, states, “The Company appreciates the high level of participation from our existing shareholders and the strong level of interest from new investors in this offering. These funds will facilitate the continued advancement of our flagship Wellgreen project and will enable us to take full advantage of the field season to initiate Pre-feasibility-level work, while we finalize engineering on the updated Preliminary Economic Assessment.”
All Officers and Directors of the Company participated in the financing, subscribing for an aggregate of 535,769 Units. Pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions
