ARMSTRONG, BC, Nov. 21 /CNW/ - GWR Resources Inc. ("GWR") (TSX Venture:
GWQ) is very pleased to announce that it has closed a $6,591,000 financing
with the MineralFields Group pursuant to which it issued an aggregate of
4,393,995 "flow-through" units. TSX Venture Exchange (the "Exchange") has
conditionally approved this financing.
Each unit is priced at $1.50 and consists of one "flow-through" common
share and one transferable common share purchase warrant, with each warrant
entitling the investor to purchase one common share of GWR for a period of 12
months at an exercise price of $1.75 per share.
Limited Market Dealer Inc. ("LMDI") has received a cash finder's fee of
$395,460 representing 6% of the gross proceeds from this financing as well as
351,519 non-transferable warrants (the "LMDI Warrant") representing 8% of the
total units sold in this financing. Each LMDI Warrant is exercisable for a
period of 12 months at an exercise price of $1.50 per share. LMDI has also
received a cash due diligence fee of $139,729.20 representing 2% of the gross
proceeds from this financing (inclusive of GST).
All the securities of GWR issued in this financing are subject to a hold
period which under the applicable securities laws and the Exchange policies
will expire on March 22, 2008.
"We are very pleased with the ongoing support of the MineralFields Group,
with this being their 4th financing of GWR" said Irvin Eisler, President of
GWR. "This is GWR's largest and highest priced financing to date. GWR looks
forward to proving that the confidence of the MineralFields Group in GWR and
its Lac La Hache Property is very well founded."
The proceeds of this financing will be used to fund the Company's ongoing
exploration program on the Company's property near Lac La Hache, B.C.
As a result of the discovery of significant copper mineralization on the
Company's Peach 1 prospect, approximately one kilometre to the west of the
Aurizon zone, an expanded drilling programme is planned at Peach 1 to
determine the size of this mineralized zone. Anomalous copper in soils with
coincident geophysical anomalies extend to the southeast of known
mineralization over a distance of about one kilometre, in turn suggesting that
the Peach 1 target extends well to the southeast and conformable to the
general structural trend of known copper-gold mineralization within the Lac La
Hache project area. It is expected that drilling will continue until the
Christmas break, by which time analytical results of holes completed to date
should have been received and planning of additional drilling can be executed.
Drilling of the Aurizon copper-gold zone is continuing with a number of
coincident geochemical and geophysical targets remaining to be drill tested.
Access to some of these target areas is prohibitive until freeze-up and, thus,
drilling of these areas will probably be postponed until after the Christmas
break. Meanwhile, drilling is concentrating on defining the extent of
copper-gold mineralization in the southeastern part of the Aurizon zone.
A reinterpretation of results of all previous work is ongoing along with
the rebuilding of historical data collections of which most paper records were
lost in a fire earlier in the year. This work will include relogging and
reinterpretation of historical drill core in the light of modern concepts of
ore deposition in the Quesnel Belt in general and the Lac La Hache area in
particular. It is expected that results of this work, along with recent survey
data such as those from radiometric surveys that were unavailable to earlier
workers, will enable the Company to gain maximum benefit from ongoing and
future exploration expenditures.
David G. Bailey, Ph.D., P.Geo. is the Qualified Person as defined by
National Instrument 43-101 who accepts responsibility for the technical
aspects of this news release
About MineralFields, Pathway and First Canadian Securities (R)
MineralFields Group (a division of Pathway Asset Management) is a
Toronto-based mining fund with significant assets under administration that
offers its tax-advantaged super flow-through limited partnerships to investors
throughout Canada during most of the calendar year, as well as hard-dollar
resource limited partnerships to investors throughout the world. Pathway Asset
Management also specializes in the manufacturing and distribution of
structured products and mutual funds. Information about MineralFields Group is
available at www.mineralfields.com. First Canadian Securities(R), a division
of Limited Market Dealer Inc., is active in leading resource financings (both
flow-through and hard dollar) on competitive, effective and service-friendly
terms, with investors both within, and outside of MineralFields Group.
GWR Resources Inc. is a British Columbia company with its exploration
office in Lac La Hache, British Columbia. GWR's property is comprised of
approximately 65 square kilometres of contiguous claim groups located
approximately 17 kilometres north northeast of Lac La Hache in south central
British Columbia. The property is accessed by approximately 30 kilometres of
all weather logging roads. Lac La Hache is located on B.C. Highway 97, and is
serviced by B.C. Rail, B.C. Hydro, and natural gas. Operations on the property
may be carried out 12 months of the year. GWR has accumulated the property and
conducted exploration since 1988.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Responsible Officer: Irvin Eisler, President,
Company Telephone Number: (250) 546-8048