Western Goldfields Announces Completion of Term Loan Facility



    
    -  All required agreements executed for $105 million term loan facility
    -  Gold forward sales contracts entered into at $801 per ounce
    -  All reclamation bonds now in place; all operating permits active
    -  First draw expected by early July 2007
    

    TORONTO, June 14 /CNW/ - Western Goldfields, Inc. (TSX:WGI,
OTC BB:WGDF.OB) today announced that all requirements needed to make the
facility underwritten by Investec Bank (UK) Limited and Commonwealth Bank of
Australia available for drawdown have been met. In connection with this term
loan facility, Western Goldfields has executed flat forward sales contracts
for 429,000 ounces of gold (Hedging Contracts) at a price of $801 per ounce.
The Hedging Contracts represent a commitment of 5,500 ounces per month for
78 months commencing July 2008, with the last monthly commitment deliverable
in December 2014. By entering into the Hedging Contracts, Western Goldfields
has now satisfied or received a waiver on all conditions precedent to the
availability of the term loan facility. All reclamation bonds have been posted
and all operating permits from the relevant agencies have been received for
the Mesquite Mine expansion. The first drawdown from the term loan facility is
expected in late June or early July 2007. All currency amounts are in US
dollars.
    Western Goldfields expects to produce between 160,000 and 170,000 ounces
annually during the term of the Hedging Contracts. Pursuant to the Hedging
Contracts, approximately 66,000 ounces will be sold annually at a price of
$801 per ounce, leaving approximately 100,000 ounces annually leveraged to the
gold price. Western Goldfields has entered into the Hedging Contracts to allow
it to draw $87.3 million against the term loan facility. The $87.3 million is
the estimate of debt required to expand operations at Mesquite. Western
Goldfields has no current plans to hedge further production from the Mesquite
Mine.
    "The completion of our financing and entering into the forward sales
program allows us to expand mining and construction at the Mesquite Mine in
California consistent with our commitment to our shareholders," reported Brian
Penny, Chief Financial Officer. "The Mine is fully funded and fully permitted,
and we are very excited to see Mesquite coming to life again."

    Western Goldfields, Inc. is listed on the Toronto Stock Exchange and
trades under the symbol WGI, and is quoted on the OTCBB under the symbol
WGDF.OB. The Company currently has 113,631,153 common shares issued and
outstanding and 143,106,483 shares of common stock on a fully diluted basis.
For further details, please visit www.westerngoldfields.com.

    Forward-Looking Information
    ---------------------------
    Certain statements contained in this news release and subsequent oral
statements made by and on behalf of the Company may contain forward-looking
information within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and similar Canadian legislation. Such
forward-looking statements are identified by words such as "intends",
"anticipates", "believes", "expects", and "hopes" and include, without
limitation, statements regarding the Company's plan of business operations,
timing and costs to recommence commercial production, economic viability of
the Mesquite Mine, financing options, including entering into a debt financing
arrangement, and the consequences thereof, potential contractual arrangements,
receipt of working capital, anticipated revenues, exercise of outstanding
warrants, and capital and operating expenditures. There can be no assurance
that such statements will prove to be accurate; actual results and future
events could differ materially from such statements. Factors that could cause
actual results to differ materially include, among others, those set forth in
the Company's Annual Report on Form 10-KSB for the year ended December 31,
2006 filed with the U.S. Securities and Exchange Commission, under the
caption, "Risk Factors". Most of these factors are outside the control of the
Company. Investors are cautioned not to put undue reliance on forward-looking
statements. Except as otherwise required by applicable securities statutes or
regulation, the Company disclaims any intent or obligation to update publicly
these forward-looking statements, whether as a result of new information,
future events or otherwise.





For further information:

For further information: please visit www.westerngoldfields.com, or
contact: Raymond Threlkeld, President and Chief Executive Officer, (416)
324-6005, rthrelkeld@westerngoldfields.com; Brian Penny, Chief Financial
Officer, (416) 324-6002, bpenny@westerngoldfields.com; Julie Taylor Pantziris,
Director, Regulatory Affairs and Investor Relations, (416) 324-6015,
jtaylor@westerngoldfields.com

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WESTERN GOLDFIELDS INC.

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