Wescan Goldfields Inc. Announces First Quarter Results

Stock Symbol: WGF: TSX-V

SASKATOON, May 29, 2013 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the "Company") reports the unaudited results of Wescan's operations for the quarter ended March 31, 2013 have been filed today on SEDAR and may be viewed at www.sedar.com.

Overview of activities

During the first quarter of 2013, Wescan continued the exploration of its portfolio of gold properties in the La Ronge Gold Belt in northern Saskatchewan, with the primary focus being the Munro Lake property.  The Company holds a 100% interest in the Munro Lake gold property (Shane Resources Ltd. retains a 10% net profit interest). During 2011 the Company conducted a magnetic and electromagnetic airborne geophysical survey on the Munro Lake property (see Wescan News Release dated June 22, 2011). A prospecting program carried out during the third quarter of 2012 was designed to follow-up the geophysical survey on the ground and further investigate gold showings from past prospecting programs. During the fourth quarter the Company announced the commencement of a winter drilling program on the Munro Lake gold property (see Wescan News Release dated December 7, 2012). Areas of interest selected for diamond drilling included geophysical anomalies and prospecting structural gold anomalies. Results of the winter drilling program will be announced once available.

The Company recently announced that Mr. Harvey Bay resigned from his role as Chief Financial Officer of the Company effective April 30, 2013 (see Wescan News Release dated May 3, 2013). Mr. Greg Shyluk has been appointed Chief Financial Officer of the Company. The Company wishes to thank Mr. Bay for contributions to the Company in his former role as Chief Financial Officer. Mr. Bay will remain on as a Director of the Company.

Results of Operations

For the quarter ended March 31, 2013 the Company recorded a net and comprehensive loss of $199,399 ($0.01 per share) compared to a net and comprehensive loss of $526,630 ($0.04 per share) for the same period in 2012.  The difference between the quarter ended March 31, 2013 and 2012 is primarily due to the Company expending approximately $0.4 million more on exploration during the first quarter of 2012 compared to the same period in 2013.  Exploration expenses during the first quarters of 2013 and 2012 were offset by recoveries of flow-through share premiums, as the Company partially satisfied its obligations to spend certain amounts on qualifying exploration expenditures during these periods.

Selected financial highlights include:

Consolidated Statement of Financial Position As at
March 31,
As at
December 31,
Current assets $     199,849 $       433,374
Property and equipment 16,473 60,180
Current liabilities 559,339 614,933
Other liabilities 112,606 159,520
Share capital, warrants and broker warrants 19,868,864 19,868,864
Contributed surplus 2,164,516 2,139,841
Deficit 22,489,003 22,289,604
Consolidated Statements of Loss and Comprehensive Loss    Three Months
 Ended March 31, 
Three Months
 Ended March 31, 
Interest and other income $            306 $            521
Operating expenses 208,432 631,869
Loss for the period before other items 208,126 631,348
Loss on disposal of property and equipment 38,187 -
Flow-through share premium recovery (46,914) (104,718)
Net and comprehensive loss for the period 199,399 526,630
Loss per share 0.01 0.04
Consolidated Statements of Cash Flows Three Months
Ended March 31,
Three Months
Ended March 31,
Cash used in operations $    (163,058) $    (468,218)
Cash from investing activities 2,402 -
Increase (decrease) in cash and cash equivalents (160,656) (468,218)
Cash and cash equivalents - beginning of period 333,352 1,094,924
Cash and cash equivalents - end of period 172,696 626,706


The Company has focused exploration efforts on its northern Saskatchewan properties with known gold mineralization located in the La Ronge Gold Belt. The Company's success in raising flow-through financing during 2011 and 2012 allowed it to perform further exploration work on the Company's Jojay gold property, commence a preliminary economic assessment on this property, perform further exploration work on the Munro Lake gold property and complete additional work on the Jasper Gold property. Management will also continue to evaluate the potential for the acquisition of other mineral properties that fit the Company's strategic direction.  The Company will be required to raise additional funds to meet its current commitments as well as for ongoing working capital requirements. Management anticipates that financing options will be sufficient to fund its obligations, exploration plans and general and administrative expenses for 2013.

Caution Regarding Forward-looking Information

This press release contains forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of Canadian Securities legislation and the United States Private Securities Litigation Reform Act of 1995. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," and words and expressions of similar import are intended to identify forward-looking statements, and, in particular, statements regarding Wescan's future operations, future exploration and development activities or other development plans contain forward-looking statements. Forward-looking statements in this press release include, but are not limited to, the ability to raise funds to meet commitments and pursue exploration activities, the use of such funds, future plans for the Jojay, Jasper and Munro Lake properties and the acquisition and exploration of additional properties.

These forward-looking statements are based on Wescan's current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific. Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world coal and gold markets,  risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining 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 and operational risks and the additional risks described in Wescan's most recently filed annual and interim MD&A, news releases and technical reports. Wescan's anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.

Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to Wescan, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events. Unless required by applicable securities law, Wescan does not undertake to update any forward-looking statement that may be made.

"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:

Mr. Darren Anderson (President) or Mr. Greg Shyluk (Chief Financial Officer)
300 - 224 4th Avenue South
Saskatoon, SK S7K 5M5
PH: (306) 664-2422
FAX: (306) 667-3557

Profil de l'entreprise

Wescan Goldfields Inc.

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