Stock Symbol: WGF: TSX-V
SASKATOON, Dec. 31, 2012 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the
"Corporation") is pleased to announce that it has closed the first
tranche of its private placement financing consisting of an aggregate
of 6,900,000 Common Shares in the capital of the Corporation ("Common
Shares"). Common Shares of 3,500,000 will be issued on a flow-through
basis pursuant to the Income Tax Act (Canada) (each a "FT Unit") at a price of $0.06 per FT Unit for
aggregate gross proceeds of $210,000.00 (the "Offering"). Each FT Unit
will consist of one Common Share issued on a flow-through basis ("FT
Share"), and one-half of one Common Share purchase warrant (each a "FT
Unit Warrant"). Common Shares of 3,400,000 will be issued on a non
flow-through basis, (each "Unit") at a price of $0.05 per Unit for
aggregate gross proceeds of $170,000.00 (collectively, the "Offering").
Each Unit will consist of one Common Share issued on a non flow-through
basis, and one whole Common Share purchase warrant (each a "Unit
Warrant"). Each whole FT Unit Warrant and Unit Warrant will entitle the
holder thereof to purchase one Common Share on a non flow-through basis
at a price of $0.10 for a period of 24 months from the date of
The Corporation will not be paying certain finder cash fees or finder
warrants for the first tranche Offering.
All securities issued pursuant to the first tranche Offering will be
subject to a four month hold period in accordance with applicable
securities laws and exchange regulations.
The Corporation intends to apply proceeds realized from the Offering to
fund further exploration on the Corporation's Jojay, Fork Lake, Transom
Lake and Tamar Lake gold properties in northern Saskatchewan located in
the La Ronge Gold Belt. The funds will also be used to fund exploration
of the Munro Lake gold property also located in northern Saskatchewan,
which is on trend with Claude Resources Inc.'s Santoy zones, as well as
for general corporate purposes.
Wescan is a Canadian-based corporation engaged in the acquisition,
exploration and development of mineral properties. Shares of Wescan
trade on the TSX Venture Exchange under the trading symbol "WGF".
Caution Regarding Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements in respect of the proposed Offering
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 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.