TORONTO, April 17 /CNW/ - Wesdome Gold Mines Ltd. (WDO-T) ("Wesdome") and
Western Québec Mines Inc. (WQM-T) ("Western Quebec") are pleased to announce
that they are exploring the possibility of a business combination and that
their boards have approved the combination in principle.
Western Québec, which owns approximately 33% of the outstanding common
shares of Wesdome, owns 1000 hectares of land in the Val d'Or region,
contiguous to Wesdome's Val d'Or assets (3200 hectares) and Agnico-Eagle's
Goldex project. A business combination would increase Wesdome's landholdings
in the area by 31% and give Wesdome an expanded, contiguous and dominant land
position in the Val d'Or Camp. This would add further exploration upside to
Wesdome. The business combination would also serve to increase Wesdome's
liquidity and remove the control block of common shares currently owned by
Western Québec. Reduced listing, legal and audit fees are other advantages of
the business combination.
The consideration of a business combination by Wesdome and Western Québec
is at a very preliminary stage and any potential transaction will be subject
to the receipt of all necessary regulatory, board and shareholder approvals.
While there is no set timeframe for the proposed transaction, the companies
hope to report to their shareholders within the next few months.
For further information:
For further information: Donovan Pollitt, VP Corporate Development,
Wesdome Gold Mines Ltd.; Barry Smith, P.Eng, President, Western Québec Mines
Inc.; 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:
firstname.lastname@example.org, Website: www.wesdome.com, Email:
email@example.com, Website: www.westernquebecmines.com