Wescan Completes Private Placement For Gross Proceeds of $2,070,750
December 21, 2006
Maurice Lindsay, President of Wescan Goldfields Inc. ("Wescan" or the "Corporation"), reports that Wescan has completed, subject to final regulatory approval, a non-brokered private placement of 5,916,428 Units of Wescan at a price of $0.35 per Unit on December 19, 2006. Gross proceeds of $2,070,750 were received from the Unit offering from subscribers resident in Alberta, Saskatchewan and Ontario. Each Unit consists of one common share and one half of one common share purchase warrant. Each whole warrant is exercisable into one common share for a period of 12 months from the closing date upon payment by the holder of $0.45 per share.
Wescan will pay $31,038 in finders' fees, equal to 5 per cent of the gross proceeds raised by a finder under the offerings and will issue 66,194 finders’ warrants equal to 5 percent of the gross proceeds sold by such finder pursuant to the offering. Each finders’ warrant will entitle the holder to acquire one common share at an exercise price of $0.45 per share for a period of 12 months following the closing date. All securities will be subject to a four month hold period in accordance with applicable securities laws and exchange regulations.
Shore Gold Inc., an insider of Wescan, participated in the Unit offering and increased its shareholdings from approximately 16% to approximately 19.5% of Wescan's issued and outstanding common shares. The board of directors of the Corporation reviewed Shore's participation in the Unit offering and determined that Shore's increase in shareholdings did not represent a change of control and was in the best interest of the Corporation. Neither the Corporation nor Shore has knowledge of any material information concerning the Corporation that has not been generally disclosed. The Corporation is relying on 5.5(2) and 5.7(2) of OSC Rule 61-501 with respect to exemptions from the formal valuation requirement and the minority approval requirement thereunder.
Proceeds will be applied to further exploration including drilling on Wescan’s 100% owned Jojay and Fork Lake (which includes the former producing Jasper Gold Mine) properties, for further exploration of the Company’s 50% owned uranium prospecting permits in the Athabasca Basin, for exploration on the Company’s other properties in Northern Saskatchewan, and for general working capital 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".
For further information please contact:
M. F. (Moe) Lindsay, President or Wade MacBain, Investor Relations at (306) 664-2422.
“The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.”