Novawest Resources Inc. - Private Placement



    VANCOUVER, Oct. 26 /CNW/ - Novawest Resources Inc. (TSXV - "NVE";
Frankfurt - "NWN"), announces that the Company has arranged a $300,000 Cdn
non-brokered Private Placement through the issuance of 1,500,000 units at a
price of $0.20 per unit. Each unit consists of one common share and one
half-share purchase warrant entitling the holder to purchase one additional
non flow-through common share of the Company for each two half-share warrants
exercised at $0.25 per share for a period of 24 months. Of the 1,500,000
common shares issued, 1,350,000 will be flow-through and 150,000 will be non
flow-through. Finders' fees may be paid on this transaction, subject to the
policies of the TSX Venture Exchange. Of the proceeds raised, $270,000 will be
spent on the Company's Canadian exploration projects while the remaining
$30,000 will be applied to the Company's working capital. All shares issued
will be subject to a 4 month hold period per the policies of the TSX Venture
Exchange. This private placement is subject to the approval of the TSX Venture
Exchange.
    In other business, the Company is also pleased to note the expiry of the
four month hold period which was attached to the 5 million common shares of
Goldbrook Ventures which Novawest received in June 2007 as part of the sale
price for its Raglan Interests. The 5 million Goldbrook shares are now
free-trading. Based on the $0.44 Cdn closing price of Goldbrook's shares, at
market close October 25th, the shares are valued at $2.2 million. Novawest
also holds 2 million Goldbrook warrants, which also have no hold period
attached, that are exercisable at $0.35 Cdn reflecting a combined paper gain
of approximately $2,380,000 to date.

    ON BEHALF OF THE BOARD OF DIRECTORS OF NOVAWEST RE

SOURCES INC. "Patrick D. O'Brien" -------------------------------- Patrick D. O'Brien - Chairman Novawest invites the public to visit its website at http://www.novawest.com or e-mail the company at novawest@novawest.com to be added to the company's e-mail list for press releases and updates. S.E.C.Exemption12(g)3-2(b) File No. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUITE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION. "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: THIS NEWS RELEASE CONTAINS FORWARD LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE SET FORTH IN OR IMPLIED HEREIN.

For further information:

For further information: Novawest Resources Inc., Suite 1000, The Marine
Building, 355 Burrard Street, Vancouver, BC, V6C 2G8, Phone: (604) 683-8990 or
Toll Free: 1-800-663-8990, Fax: (604) 683-8903

Organization Profile

NOVAWEST RESOURCES INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890