OSLO, Norway and VANCOUVER, BC, June 26 /CNW Telbec/ - Wega Mining ASA
and Tagish Lake Gold Corp. (TSX-V: TLG) announced today that they have entered
into a subscription agreement pursuant to which Wega Mining has agreed to make
an equity investment of up to C$10 million in Tagish Lake Gold Corp.
Under the terms of the subscription agreement, Wega Mining's investment
will be structured as follows:
- Wega Mining will make an initial investment (subject to, among other
things, receipt of any required regulatory approvals and customary
closing conditions) of approximately C$2,000,000 consisting of Units at
a price of C$0.20 per Unit; and
- Wega will make a second investment of approximately C$8,000,000
consisting of Units at a price of C$0.20 per Unit.
Each Unit will consist of one Common Share and one Warrant. Each Warrant
will entitle the holder to acquire one Common Share on or before the 2nd
anniversary of the date of issue at an exercise price of C$0.30 per share
subject adjustment in accordance with its terms. The Units will separate into
Common Shares and Warrants immediately upon issuance. All securities to be
issued will be subject to a hold period of four months from the respective
closing date in accordance with the rules and policies of the TSX Venture
Exchange and applicable Canadian securities laws.
The closing of the initial investment is expected to occur upon receipt
of the requisite approval of the TSX Venture Exchange. The closing of the
second investment is expected to occur on or about August 9th , 2007 subject
to, among other things, completion of a due diligence review by Wega Mining,
receipt of all required regulatory, stock exchange and shareholder approvals
and other customary closing conditions.
The proceeds of the equity investment will be used by Tagish Lake Gold
Corp. to complete the "Skukum Creek Deposit Exploration & Feasibility Program"
during the balance of 2007. Exercise of the warrants will be instrumental in
providing the financing to bringithe deposit to production by 2009.
Following the closing of the two transactions, Wega will own 50 000 000
common shares of Tagish Lake Gold Corp. representing approximately 35 % of the
issued and outstanding shares or 45 % fully diluted when the warrants are
exercised. Effective as of the closing date of the second investment, the
board of directors of Tagish Lake Gold Corp. will be comprised of six
directors, two of whom will be nominees of Wega Mining. Thereafter, as long as
Wega Mining owns at least 17.5% of the outstanding common shares, it will be
entitled to nominate a number of directors for election that is proportionate
to the percentage of common shares held by Wega Mining.
Robert Rodger, President of Tagish Lake Gold Corp states: "We are pleased
that Wega Mining ASA has joined with Tagish to move the Skukum Creek project
to production. With financing available, the Company can focus its efforts on
the work on the high grade Skukum Creek gold-silver deposit as well as
advancing the other gold deposits on the Skukum property."
"Adding Tagish Lake to its Western Canada project portfolio, Wega Mining
will leverage its development and project organisation, to bring all three
deposits (two deposits held by Merit Mining Corp) to commercial production
over the next two years. In total, Merit Mining and Tagish Lake are set to
produce at least 200,000 oz per year of gold and gold equivalents from the end
of 2009 and 300,000 oz per year from 2011" said Lars Marius Furu, CEO of Wega
Tagish Lake Gold Corp. is a TSXV listed company (TLG) which explores for
and develops high grade gold-silver mineral deposits in the Yukon Territory of
Canada. The Company is currently focused on its wholly owned, 178 km2 Skukum
Mineral District located 80 km by road south of Whitehorse. The Skukum Mineral
District hosts the Skukum Creek gold-silver deposit and the Goddell Gully gold
deposit, and the Mt. Skukum gold deposit.
Wega Mining ASA is an Oslo-based international mining company focused on
exploring, developing and operating gold, copper and zinc deposits. The
company currently holds exploration licenses in Guinea, Canada, Portugal,
Ecuador, Romania and Norway, and a gold-copper development project in Canada.
It trades on Oslo Axess, an exchange regulated by the Oslo Stock Exchange,
under the ticker WEMI. Further information can be accessed at
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: Robert Rodger, President, Tagish Lake Gold
Corp., (604) 273-6477; Lars Marius Furu, CEO, Wega Mining ASA, 011 47 9018
8289; Renmark Financial Communications Inc.: Barbara Komorowski:
firstname.lastname@example.org; John Boidman: jboidman@
renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,