/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
Stock Symbol: TSX-V: WGF
SASKATOON, Feb. 24 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the
"Company") is pleased to announce that it has closed a private
placement financing consisting of an aggregate of 10,125,000 common
shares in the capital of the Company ("Common Shares") issued on a
flow-through basis pursuant to the Income Tax Act (Canada) (each a "FT Share") at a price of $0.15 per FT Share and
250,100 units of the Corporation ("Units") at a price of $0.14 per
Unit, for aggregate gross proceeds of $1,553,764 (collectively, the
"Offering"). Each Unit consists of one Common Share issued on a non
flow-through basis, and one half of one Common Share purchase warrant
(each a half "Unit Warrant"). Each whole Unit Warrant entitles the
holder thereof to purchase one Common Share on a non flow-through basis
at a price of $0.24 for a period of 12 months from the date of
issuance. Of the total number of FT shares issued pursuant to the
Offering, 10,000,000 were purchased by MineralFields Group.
The Corporation will pay certain finders (each a "Finder") cash fees
equal to up to 7% of the gross proceeds raised by such Finder pursuant
to the Offering, and will issue such Finder warrants equal to 7% of the
number of Units and/or FT Shares attributable to such Finder pursuant
to the Offering (the "Finder's Warrants"). Each Finder's Warrant will
entitle the holder to acquire one Common Share on a non flow-through
basis at an exercise price of $0.24 per Common Share for a period of 12
months from the date of issuance.
Darren Anderson, President of Wescan states, "We are very pleased to be
entering into this relationship with MineralFields Group. This is an
important step in the growth of the Company and we look forward to
working with MineralFields Group www.mineralfields.com as we now move forward with achieving our objectives of growing the
Company through further exploration on our coal and gold properties."
All securities issued pursuant to the Offering and the Finder's Warrants
are subject to a four month hold period in accordance with applicable
securities laws and exchange regulations.
Proceeds realized from the Offering will be applied to fund exploration
of the Company's coal project near Hudson Bay, Saskatchewan as well as
the exploration of the Jojay Gold Project, Jasper Gold Project, and the
Munro Lake Gold Project in the La Ronge Gold Belt in northern
Saskatchewan, as well as for general corporate purposes.
Wescan is a Canadian-based corporation engaged in the acquisition,
exploration and development of mineral properties. Common Shares of
Wescan trade on the TSX Venture Exchange under the trading symbol
Caution Regarding Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements including those relating to the tax
treatment of the FT Shares and the use of the net proceeds by Wescan.
These forward-looking statements are based on Wescan's current beliefs
as well as assumptions made by and information currently available to
Wescan. Although management considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and specific,
and risks exist that predictions, forecasts, projections and other
forward-looking statements will not be achieved. We caution readers not
to place undue reliance on these statements as a number of important
factors could cause the actual results to differ materially from the
beliefs, plans, objectives, expectations, anticipations, estimates and
intentions expressed in such forward-looking statements. These factors
include, but are not limited to, developments in world coal and gold
markets, changes in exploration plans due to exploration results and
changing budget priorities of Wescan, the effects of competition in the
markets in which Wescan operates, the impact of changes in the laws and
regulations regulating mining exploration and development, judicial or
regulatory judgments and legal proceedings, operational and
infrastructure risks and tax treatment of the FT Shares.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
Common Shares and the FT Shares will not be and have not been
registered under the United States Securities Act of 1933 and may not
be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release."
SOURCE Wescan Goldfields Inc.
For further information:
Darren Anderson, President or Harvey Bay, Chief Financial Officer at (306) 664-2422