Wesdome and Windarra announce closing of the Magnacon purchase and execution of the Pukaskwa exploration and option agreement



    TORONTO, June 9 /CNW/ - Wesdome Gold Mines Ltd. ("Wesdome") and Windarra
Minerals Ltd. ("Windarra") are pleased to announce that they have: (a)
completed the sale to Wesdome of Windarra's interest, being approximately
22.72%, in the patented claims/leases referred to as the Magnacon Property
(the "Magnacon Acquisition"); and (b) entered into an exploration and option
agreement (the "Option Agreement") pursuant to which Wesdome has the exclusive
right to conduct exploration within and the option (the "Pukaskwa Option") to
earn up to a 60% undivided working interest in certain mining claims owned by
Windarra and referred to as the Pukaskwa Claims. The terms of the Magnacon
Acquisition and the Pukaskwa Option were announced by the parties on May 11,
2009.

    
    Magnacon Acquisition
    --------------------
    

    Following the Magnacon Acquisition, Wesdome owns 100% of the Magnacon
Property, subject to a 1% net smelter royalty in favour of Windarra granted in
connection with the acquisition. Windarra was also granted the right to have
Wesdome mill up to a maximum of 50,000 metric tonnes of ore per year from
properties currently owned by Windarra at a cost equal to the production cost
of such milling plus $2.00 per tonne of ore milled. In addition, the joint
venture agreement between Wesdome and Windarra dated March 3, 2000, which
applied to the Magnacon Property and the East Property (as defined therein),
now no longer applies to the Magnacon Property, but continues to apply to the
East Property.

    
    Pukaskwa Option
    ---------------
    

    Under the Option Agreement, Wesdome has the right to earn up to a 60%
undivided interest in the Pukaskwa Claims by expending or causing to be
expended an aggregate of $3,000,000 in exploration and development expenses on
the Pukaskwa Claims by certain dates over the period commencing on June 5,
2009 and continuing until June 30, 2014 (the "Option Period").
    Upon making or causing to be made expenditures totalling $1,500,000,
Wesdome shall have earned a 30% undivided working interest in the Pukaskwa
Claims and upon making or causing to be made expenditures totalling
$3,000,000, Wesdome shall have earned a further 30% interest in the Pukaskwa
Claims such that Wesdome shall have earned an aggregate 60% interest in such
claims. Provided that the Pukaskwa Option remains in good standing, Wesdome
shall be the operator with respect thereto.
    If Wesdome provides a withdrawal notice (the "Withdrawal Notice") to
Windarra after earning the 30% interest or fails to earn the 60% interest in
the Pukaskwa Claims, Windarra shall be entitled to dilute Wesdome's interest
in the Pukaskwa Claims by making expenditures of its own related thereto. If
Windarra makes expenditures on the Pukaskwa Claims, each $100,000 of
expenditures made by Windarra, will reduce Wesdome's interest in the Pukaskwa
Claims by 1%.
    If Wesdome does not provide the Withdrawal Notice to Windarra, but fails
to make any expenditures related to the Pukaskwa Claims prior to June 30,
2013, Windarra shall have the right to acquire the 30% interest in the
Pukaskwa Claims from Wesdome for a purchase price of $200,000 at any time
until the expiry of the Option Period.
    Upon Wesdome earning-in the 60% interest, Wesdome and Windarra shall be
deemed to have formed a joint venture and shall forthwith enter into a joint
venture agreement, which agreement shall be similar to the Magnacon JV
Agreement and shall include a provision stating that Wesdome has the exclusive
right to process the ore arising from the Pukaskwa Claims at Wesdome's
facility located on the Magnacon Property.

    Wesdome is an established Canadian gold producer with wholly-owned mining
and milling complexes located in Wawa, Ontario and Val d'Or, Québec. Wesdome
has been producing gold continually for 20 years on an unhedged basis and to
date has produced in excess of 1.0 million ounces. The Company has 99.8
million shares issued and outstanding and trades on the Toronto Stock Exchange
under the symbol "WDO".

    Windarra Minerals Ltd. is an established Canadian exploration company. It
has actively been involved in exploration and development projects in the
Mishibishu Greenstone belt for 20 years, and holds a further 100% interest in
the two Mishi mining leases consisting of approximately 705 hectares in the
Mishibishu Lake township and a 25% interest in the Magnacon East property. It
has 30.7 million shares outstanding and trades on the TSX Venture Exchange
under the symbol "WRA".

    This news release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the future
financial or operating performance of the companies and their projects. Often,
but not always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes" or
variations (including negative variations) of such words and phrases, or state
that certain actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the companies to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements. Forward-looking statements
contained herein are made as of the date of this press release and the
companies disclaim any obligation to update any forward-looking statements,
whether as a result of new information, future events or results or otherwise.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements. The companies undertake no obligation to
update forward-looking statements if circumstances, management's estimates or
opinions should change, except as required by securities legislation.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements.

    
    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.
    




For further information:

For further information: For further information respecting Wesdome,
please contact Rowland Uloth, President, Donovan Pollitt, P.Eng., VP Corporate
Development, Wesdome Gold Mines Ltd., 8 King St. East, Suite 1305, Toronto,
ON, M5C-1B5, Toll Free: 1-866-4-WDO-TSX, Phone: (416) 360-3743, Fax: (416)
360-7620, Email: invest@wesdome.com, Website: www.wesdome.com; For further
information respecting Windarra, please contact John Pallot, President,
Windarra Minerals Ltd., 2300 - 1066 West Hastings Street, Vancouver, BC, V6E
3X2, Tel: (604) 688-1508, Fax: (604) 601-8253, Email: info@windarra.com,
Website: www.windarra.com

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Wesdome Gold Mines Ltd.

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