/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE U.S./
ASX & TSX: WSA
WEST PERTH, Western Australia, Sept. 10 /CNW/ - Western Areas NL ("WSA")
today announced that it had increased its investment in Canadian listed nickel
company Mustang Minerals Corp. to 19.2% after exercising 4,570,401 warrants at
CAD$0.45 per warrant, for a total CAD$2.05 million.
Mustang Minerals ("Mustang") owns a number of advanced nickel and PGE
exploration projects in Ontario and Manitoba. Mustang's main assets are the
100% owned Maskwa nickel deposit and surrounding Bird River greenstone belt
holdings in southern Manitoba.
Mustang is in the final stages of a pre feasibility study for an open pit
and potential underground mine at the Maskwa nickel/copper/PGE deposit which
contains a previously announced total 'in pit' Indicated Mineral Resource
containing 51,500 tonnes nickel plus an Inferred Mineral Resource containing
4,500 tonnes nickel.
Western Areas Managing Director Mr Julian Hanna said "Our increased
investment in Mustang reflects Western Areas confidence that Maskwa can be
brought into early production. We also see an opportunity for additional
significant nickel, copper and PGE discoveries elsewhere on Mustang's
substantial tenement holdings in Canada."
Early Warning Report Summary
On November 14, 2006 Western Areas NL entered into a subscription
agreement with Mustang Minerals Corp. where Western Areas acquired 8,571,429
common shares and 4,570,401 warrants in Mustang for aggregate consideration of
C$3,000,000. Each warrant entitles Western Areas to acquire one common share
of Mustang at an exercise price of C$0.45 per share until December 6, 2007.
Western Areas has elected to exercise 4,570,401 warrants to acquire 4,570,401
common shares of Mustang (total payment CAD$2,056,680. The acquisition of the
4,570,401 common shares will result in the WSA having a 19.2% ownership
interest in the outstanding capital of Mustang. The common shares will be
listed on the TSX Venture Exchange once issued.
A full copy of the Early Warning report to be filed by Western Areas can
be obtained by contacting Miriam Sharp at Western Areas by: Mail- Suite 3,
level 1, 11 Ventnor Avenue West Perth Australia 6005. Tel- +61 8 9334 7777 or
FORWARD LOOKING STATEMENT: This release contains certain forward-looking
statements. These forward-looking statements are subject to a variety of risks
and uncertainties beyond the Company's ability to control or predict which
could cause actual events or results to differ materially from those
anticipated in such forward-looking statements.
This announcement does not include reference to all available information
on the Company and should not be used in isolation as a basis to invest in
Western Areas. Any potential investors should refer to Western Area's other
public releases and statutory reports and consult their professional advisers
before considering investing in the Company.
For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company
warrants that Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.
For further information:
For further information: Julian Hanna, Managing Director - Western Areas
NL, Telephone +61 8 9486 7855, Email: email@example.com; Craig
Oliver, Finance Director - Western Areas NL, Telephone +61 8 9486 7855, Email:
firstname.lastname@example.org; Ann Nahajski, Investor Relations - Porter
Novelli, Telephone +61 8 9386 1233, Email: email@example.com
Or visit: www.westernareas.com.au