Stock Symbol: WGF: TSX-V
SASKATOON, Dec. 18, 2012 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the
"Corporation") has updated the terms of their recently announced
proposed private placement (See December 14, 2012 News Release) where
each FT Unit will now 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"). Each Unit will now consist
of one Common Share issued on a non flow-through basis, and one whole
Common Share purchase warrant (each a "Unit Warrant"). Wescan intends
to issue up to 16,666,667 common shares in the capital of the
Corporation ("Common Shares") 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 and up to
10,000,000 units of the Corporation ("Units") at a price of $0.05 per
Unit, for intended aggregate gross proceeds of up to $1,500,000
(collectively, the "Offering"). 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 issuance.
The Corporation intends to pay certain finders (each a "Finder") cash
fees of up to 7% of the gross proceeds raised by such Finder pursuant
to the Offering, and intends to issue 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 $0.10 for a period of 24
months from the date of issuance.
All securities issued pursuant to the Offering and the Finder's Warrants
will be subject to a four month hold period in accordance with
applicable securities laws and exchange regulations.
Insiders will be participating at greater than 25% of the placement.
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.
Both transactions are subject to regulatory approval by the TSX Venture
Exchange and compliance with applicable securities laws.
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