Pursuant to an investor rights agreement between the Company and Agnico dated December 13, 2016, Agnico maintained its pro rata ownership interest in the Company of 19.8%, on a partially-diluted basis following the completion of the Offering, by acquiring 1,885,000 Common Shares under the Offering. The gross proceeds received from the sale of the FT Shares will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act (Canada) (" Tax Act ") on the Company's properties in the White Gold District of the Yukon Territory and renounced to subscribers in the Offering with an effective date no later than December 31, 2022. Such Canadian exploration expenses will also qualify as "flow-through mining expenditures" as defined in subsection 127(9) of the Tax Act. The net proceeds from the sale of the Common Shares will be used for working capital and other general corporate expenses.