Wescan Goldfields Inc. announces closing of first tranche of
private placement
Stock Symbol: WGF: TSX-V
SASKATOON,
Dec. 31, 2012 /CNW/ - Wescan
Goldfields Inc. ("Wescan" or the "Corporation") is pleased to
announce that it has closed the first tranche of its private
placement financing consisting of an aggregate of 6,900,000 Common
Shares in the capital of the Corporation ("Common Shares"). Common
Shares of 3,500,000 will be issued on a flow-through basis pursuant
to the Income Tax Act (Canada) (each a "FT Unit") at a price of
$0.06 per FT Unit for aggregate gross
proceeds of $210,000.00 (the
"Offering"). Each FT Unit will consist of one Common Share issued
on a flow-through basis ("FT Share"), and one-half of one Common
Share purchase warrant (each a "FT Unit Warrant"). Common Shares of
3,400,000 will be issued on a non flow-through basis, (each "Unit")
at a price of $0.05 per Unit for
aggregate gross proceeds of $170,000.00 (collectively, the "Offering"). Each
Unit will consist of one Common Share issued on a non flow-through
basis, and one whole Common Share purchase warrant (each a "Unit
Warrant"). Each whole FT Unit Warrant and Unit Warrant will entitle
the holder thereof to purchase one Common Share on a non
flow-through basis at a price of $0.10 for a period of 24 months from the date of
issuance.
The Corporation will not be paying certain
finder cash fees or finder warrants for the first tranche
Offering.
All securities issued pursuant to the first
tranche Offering will be subject to a four month hold period in
accordance with applicable securities laws and exchange
regulations.
The Corporation intends to apply proceeds
realized from the Offering to fund further exploration on the
Corporation's Jojay, Fork Lake, Transom Lake and Tamar Lake gold properties in northern
Saskatchewan located in the La
Ronge Gold Belt. The funds will also be used to fund exploration of
the Munro Lake gold property also located in northern Saskatchewan, which is on trend with Claude
Resources Inc.'s Santoy zones, as well as for general corporate
purposes.
Wescan is a Canadian-based corporation engaged
in the acquisition, exploration and development of mineral
properties. Shares of Wescan trade on the TSX Venture Exchange
under the trading symbol "WGF".
Caution Regarding Forward-Looking
Statements
Certain statements contained in this press
release constitute forward-looking statements in respect of the
proposed Offering including those relating to the tax treatment of
the FT Shares and the use of the net proceeds by Wescan. These
forward-looking statements are based on Wescan's current beliefs as
well as assumptions made by and information currently available to
Wescan. Although management considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. By their very nature, forward-looking
statements involve inherent risks and uncertainties, both general
and specific, and risks exist that predictions, forecasts,
projections and other forward-looking statements will not be
achieved. We caution readers not to place undue reliance on these
statements as a number of important factors could cause the actual
results to differ materially from the beliefs, plans, objectives,
expectations, anticipations, estimates and intentions expressed in
such forward-looking statements. These factors include, but are not
limited to, developments in world gold markets, changes in
exploration 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, operational and
infrastructure risks and tax treatment of the FT Shares.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy the securities in
any jurisdiction. The Common Shares and the FT Shares will not be
and have not been registered under the United States Securities Act
of 1933 and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.
"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.