/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, March 5, 2012 /CNW/ - Wesgold Minerals Inc. (TSX-V: WSG) is pleased to announce that it has arranged, subject to stock exchange approval, a non-brokered private placement financing of up to 6,700,000 units at $0.75 per unit, for proceeds of up to $5,025,000. Each unit will consist of one common share and one-half of a warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company at $1.00 for two years from closing.
If at any time from four months and one day after the closing of the financing, the volume-weighted average trading price of the Company's common shares on the TSX Venture Exchange over a period of 20 consecutive trading days exceeds $1.50, the Company may, within five days after such an event, provide notice to the warrant holders that the warrants will expire early, namely, on the date which is 30 calendar days after the date of such notice to the warrant holders.
The Company will allocate a portion of the financing to subscribers found by Axemen Resource Capital Ltd., an Exempt Market Dealer, and may agree to similar allocations to other exempt market or investment dealers. The Company will pay finder's fees equal to 5% of subscription amounts found, payable in cash or units, plus issue finder's warrants in an amount equal to 5% of units purchased. Each finder's warrant will be exercisable into one common share of the Company at a price of $1.00 for two years from closing.
The net proceeds of the placement will be used towards the acquisition and exploration of the Cordoba Property, Colombia and for general working capital purposes.
About Wesgold Minerals
Wesgold Minerals Inc. is a Vancouver-based mineral exploration company focused on the acquisition and exploration gold and copper projects in Colombia. Wesgold recently optioned from Minatura the Cordoba property, covering 25,790 hectares in the Department of Cordoba, Colombia, 200km north of the city of Medellin.
ON BEHALF OF THE BOARD
Simon Ridgway, Chairman of the Board
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available
For further information:
please refer to the Company's filings on SEDAR (www.sedar.com) or contact the Company by telephone at 604-801-5432