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Lincoln Park Capital Fund agrees to invest up to $10.1 mln in WestMountain Gold

Chicago-based Lincoln Park Capital Fund has agreed to invest up to $10.1 million in WestMountain Gold. According to terms of the agreement, WestMountain has the right to sell to LPC up to $10 million of its common stock for a two-year period. LPC has already purchased $100,000 of WestMountain stock at a price of $.88 per share. Headquartered in Sandpoint, Idaho, WestMountain Gold is a mineral exploration company.

PRESS RELEASE

DENVER–(BUSINESS WIRE)–WestMountain Gold, Inc. (OTCQB:WMTN), an emerging mineral exploration company, announced today that it has entered into a purchase agreement with Lincoln Park Capital Fund, LLC (“LPC”), a Chicago-based institutional investor, whereby LPC has committed to invest up to $10.1 million of its common stock over a 24-month term.
Upon signing the agreement, LPC invested $100,000 in WestMountain at a price of $.88 per share as an initial purchase under the agreement. Thereafter, at its sole discretion, WestMountain has the right to sell to LPC up to an additional $10 million of its common stock, subject to certain conditions, which include the effectiveness of a registration statement with the U.S. Securities and Exchange Commission covering the sale of the shares that may be issued to LPC.
There are no upper limits to the price LPC may pay to purchase WestMountain common stock and the purchase price of the shares related to any future investments will be based on the prevailing market prices of the Company’s shares immediately preceding the notice of sale to LPC. WestMountain controls the timing and amount of any future investment and LPC is obligated to make such purchases. LPC has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s shares of common stock. The agreement may be terminated by the Company at any time, at its sole discretion, without any cost or penalty. The proceeds from this investment will be used for general and administrative expenses and working capital.
A more detailed description of the agreement is set forth in the Company’s Current Report on Form 8-K recently filed with the SEC which the Company encourages be reviewed carefully.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale are unlawful prior to registration or qualification under securities laws of any such jurisdiction.
About WestMountain Gold, Inc.
WestMountain Gold, Inc. (OTCQB:WMTN) is an exploration company that explores, acquires, and develops advanced stage properties. The Company has rights to a joint venture in a high-grade gold system in the resource definition phase. The WestMountain property consists of 344 Alaska state mining claims covering 223 square kilometers. All government permits and reclamation plans for continued exploration through 2014 were renewed in 2010. TGC is a joint venture partner of Corvus Gold, Inc. (“Corvus”) on this project. TGC has the right to earn a 51% interest in the Terra Project from Corvus by spending a total of USD $6.0 million by December 31, 2013. TGC can further increase its ownership to 80% with an additional USD $3.05 million investment, bringing to a total of USD $9.05 million capital investment by December 31, 2014. Additional details are available at www.westmountaingold.com.
About Lincoln Park Capital (“LPC”)
LPC is an institutional investor headquartered in Chicago, Illinois. LPC’s experienced professionals manage a portfolio of investments in public and private entities. These investments are in a wide range of companies and industries emphasizing life sciences, specialty financing, energy and technology. LPC’s investments range from multiyear financial commitments to fund growth to special situation financings to long-term strategic capital offering companies certainty, flexibility and consistency. For more information, visit www.lpcfunds.com.