VANCOUVER, Dec. 20, 2012 /CNW/ - Western Copper and Gold Corporation
("Western" or the "Company") (TSX:WRN; NYSE MKT:WRN) announces that the
Company and its wholly owned subsidiary, Casino Mining Corporation,
have entered into a royalty sale agreement (the "Agreement") dated
December 20, 2012 with 8248567 Canada Limited, an arm's length
purchaser, (the "Purchaser") whereby the Purchaser agrees to cancel its
5% net profits interest royalty in the Casino Project and pay US$32
million in exchange for a 2.75% net smelter returns royalty in the
Casino Project (the "Transaction").
In accordance with the terms of the Agreement, among other things:
a. The Purchaser will obtain a 2.75% net smelter returns royalty
(the "NSR Royalty") on the future sale of any metals and minerals
derived from the Casino Project;
b. The Purchaser will agree to cancel the 5% net profits interest in
the Casino Project that it already owns on certain claims held by
c. Western will receive a cash payment of US$32 million upon
completion of the Transaction for Casino Project development
expenditures and general working capital.
Western has the option to repurchase 0.75% of the NSR Royalty (resulting
in a 2.00% remaining royalty) for the following amount:
a. US$39 million if the amount is paid on or prior to December 31,
b. US$59 million if the amount is paid after January 1, 2014 but on
or before December 31, 2017.
This Transaction is subject to any required regulatory approvals and
conditions usual for a Transaction of this nature and is expected to
close on or about December 21, 2012.
"This Transaction is expected to provide us with sufficient capital to
complete the permitting and detailed engineering of the Casino Project
and have it ready for project financing and construction;" said Dale
Corman, Chairman and CEO, "furthermore, it helps to affirm the
tremendous value of the project."
CIBC World Markets Inc. acted as financial advisor to Western Copper &
Gold in connection with this transaction.
ABOUT WESTERN COPPER AND GOLD CORPORATION
Western Copper and Gold Corporation is a Vancouver-based exploration and
development company with significant copper, gold and molybdenum
resources and reserves. The Company has 100% ownership of the Casino
Project located in the Yukon Territory. The Casino Project is one of
the world's largest open-pit gold, copper, silver and molybdenum
deposits. For more information, visit www.westerncopperandgold.com.
On behalf of the board,
F. Dale Corman
Chairman & CEO
Cautionary Disclaimer Regarding Forward-Looking Statements and
Certain of the statements and information in this press release
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
securities laws. Forward-looking statements and information generally
express predictions, expectations, beliefs, plans, projections, or
assumptions of future events or performance and do not constitute
historical fact. Forward-looking statements and information tend to
include words such as "may," "expects," "anticipates," "believes,"
"targets," "forecasts," "schedules," "goals," "budgets," or similar
terminology. Forward-looking statements and information herein
include, but are not limited to, statements with respect to the
completion of the Transaction; completion of permitting and detailed
engineering; and resource and reserve estimates. All forward-looking
statements and information are based on Western's or its consultants'
current beliefs as well as various assumptions made by and information
currently available to them. These assumptions include, without
limitation that any necessary regulatory approvals and all conditions
precedent to the proposed transaction will be obtained and/or satisfied
in a timely manner and that regulatory approvals will be available on
acceptable terms. Although management considers these assumptions to
be reasonable based on information currently available to it, they may
prove to be incorrect. Forward-looking statements and information are
inherently subject to significant business, economic, and competitive
uncertainties and contingencies and are subject to important risk
factors and uncertainties, both known and unknown, that are beyond
Western's ability to control or predict. Actual results and future
events could differ materially from those anticipated in
forward-looking statements and information. Examples of potential
risks are set forth in Western's most recently filed Form 40-F with the
U.S. Securities and Exchange Commission and its most recently filed
Annual Information Form with the Canadian Securities Administrators as
of the date of this press release. Accordingly, readers should not
place undue reliance on forward-looking statements or information.
Western expressly disclaims any intention or obligation to update or
revise any forward-looking statements and information whether as a
result of new information, future events or otherwise, except as
otherwise required by applicable securities legislation.
SOURCE: Western Copper and Gold Corporation
For further information:
Paul West-Sells, President & COO or Justin Rasekh, Manager Corporate Communications & Investor Relations, at 604.684.9497 or email firstname.lastname@example.org.