More financial support has been secured for Casino copper-gold project in Yukon. (Image: Wester Copper and Gold)

Mitsubishi Materials Corp. made a strategic equity investment in Western Copper and Gold Corp. to further advance the company’s Casino copper-gold project in Yukon, Canada. Mitsubishi has agreed to acquire 5% of Western’s shares, on an undiluted basis. The exact number of shares to be issued, and proceeds to be received, by the company will depend on whether Rio Tinto Canada Inc. elects to exercise its pre-existing right to participate on a pro rata basis in equity financings by the company to maintain its current ownership interest (estimated at 7.8%). 

Western remains the sole owner of the Casino Project and will continue to be the operator. The company said it will use the proceeds of the strategic investment to advance the project and to fund specific areas of study, developed with input from Mitsubishi Materials, with the aim of progressing to a development phase.

The transaction was expected to close during mid-April, and is subject to regulatory approval, including that of the Toronto Stock Exchange and the NYSE American LLC. BMO Capital Markets and RBC Capital Markets are acting as financial advisors.