VANCOUVER, July 20 /CNW/ - Western Pacific Resources Corp. (WRP - TSXV) is pleased to announce that it has negotiated, subject to stock exchange approval, a non-brokered private placement of up to 6 million units at $0.35 per unit, for gross proceeds of up to $2.1 million. Each unit will consist of one common share and one-half of a warrant, each whole warrant entitling the holder to purchase one additional common share at $0.50 exercisable for 18 months.
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 $0.75, 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.
A finder's fee may be paid on a portion or all of the placement. The finder's fee will consist of 7% cash or units, and 7% warrants, each such warrant entitling the holder to purchase one common share at $0.55 exercisable for one year.
The net proceeds of the financing will be used for drilling of the Company's Mineral Gulch project in Idaho and for general working capital purposes.
About Mineral Gulch
Mineral Gulch is located in Cassia County, Idaho, along the southeast edge of the Black Pine Mountains, approximately 128km southeast of Burley and 28 km northwest of Utah. Western Pacific Resources Corp. owns 100% of the project which it acquired through staking.
The project encompasses the historic Black Pine Mining District and surrounding exploration ground. Western Pacific recently acquired the historical proprietary data for the property from Newmont Mining Corporation.
Sporadic small-scale gold and base-metal mining occurred in the area as early as 1915. Noranda conducted exploration programs at Black Pine between 1984 and 1990. Pegasus Mining entered into a joint venture with Noranda in 1990 and became the majority owner and operator of the mining effort between 1992 and 1998. The Black Pine produced over 500,000 ounces of gold at an average head grade of 1.5 grams from several small open pits. Historic exploration and mining efforts have generally focused on near-surface, oxidized ore bodies.
About Western Pacific
Western Pacific is a gold explorer focused on acquiring advanced-stage projects in the western United States, and has the right combination of exploration and financial professionals to succeed in making a world class gold discovery. For more information, please visit our website at www.westernpacificresources.com.
ON BEHALF OF THE BOARD
Warwick Smith, Chief Executive Officer
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 contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological data, risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits, project cost overruns or unanticipated costs and expenses -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Western Pacific Resources Corp.
For further information: For further information: Tel: (604) 801-5432, Fax: (604) 662-8829, Email: firstname.lastname@example.org, Website: www.westernpacificresources.com