Wesdome Gold Mines Ltd. - Signing of an option and purchase agreement with Britannica Resources Inc.



    TORONTO, March 7 /CNW/ - Wesdome Gold Mines Ltd. ("Wesdome") is pleased
to announce that it has entered into an agreement with Britannica Resources
Inc. ("Britannica") for the option and sale of 10 mining claims situated in
Fiedmont and Courville Townships, Province of Québec, known as the McKenzie
Break Property (the "Property") upon the following terms and conditions, to
wit:

    
    -   an initial cash payment of $550,000 and $200,000 of shares of
        Britannica;

    -   on the first anniversary, a cash payment of $500,000 and $200,000 of
        shares of Britannica;

    -   on the second anniversary, a cash payment of $400,000 and $100,000 of
        shares of Britannica;

    -   once Wesdome has received the total cash payment of $1,450,000 and
        received $500,000 of Britannica shares, the Property will be
        transferred to Britannica;

    -   in addition, once Britannica has mined 250,000 ounces of gold from
        the Property, Wesdome will be entitled to receive either 1,000 ounces
        of gold or the equivalent in shares of Britannica.
    

    The Property is subject to a 1.75% net smelter return royalty and annual
advance payments of $30,000 until the commencement of production.
    The McKenzie Break property is located near Val d'Or, Quebec and has been
previously explored by Placer Dome Canada and Western Quebec Mines Inc. At
least 5 known, flat-lying gold zones have been identified and have been the
subject of historic reserves and resource estimates made prior to the adoption
of National Instrument 43-101. One of these, the No. 4 Zone was drilled at
30 metre centres to a 120 meter depth displaying good continuity and high
grades. Wesdome believes little additional work would be required to update
resources to current requirements and is pleased to participate in the upside
exploration potential of the property through share ownership in an aggressive
and focused junior exploration company. Wesdome is pursuing a strategy of
exploration and development in close proximity to underground infrastructure
at its two producing mines; Kiena in Val d'Or, Quebec and Eagle River in Wawa,
Ontario.

    Wesdome Gold Mines Ltd. is an established Canadian gold producer with
mining operations and development projects in Wawa, Ontario and Val d'Or,
Quebec. The Company has 90.5 million shares issued and trades on the TSX
Exchange under the symbol "WDO".





For further information:

For further information: on Wesdome Gold Mines Ltd., please contact:
Paul Cregheur, President, or Donovan Pollitt, VP Corporate Development, 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

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Wesdome Gold Mines Ltd.

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