Business
Wescan announces acquisition of Jojay Gold Deposit
Wescan announces acquisition of Jojay Gold Deposit.
About this update from Wescan Goldfields Inc.
[{"type":"text","content":"\n\n\n\n\nStock Symbol: WGF: TSX-VEN\n\nSASKATOON, SK, Aug. 31 /CNW/ - M. F. (Moe) Lindsay, President of Wescan\nGoldfields Inc. (\"Wescan\") is pleased to announce that Wescan has signed a\nLetter of Intent (\"LOI\") with Claude Resources Inc. (\"Claude\") to acquire\nClaude's 75% of the Jojay Gold Deposit to hold 100% of the property. The Jojay\nGold Deposit was formerly held by Wescan (25% and operator) and Claude (75%)\nunder a Joint Venture agreement. Under the terms of the LOI, subject to\nregulatory approval, Wescan will acquire Claude's interest by the issuance of\nthree and one half million (3.5 M) Wescan common shares.\nThe Jojay Gold Deposit is located in the LaRonge Greenstone Belt of\nnorthern Saskatchewan. Wescan previously disclosed historical resource\nestimate information on the Jojay Gold Deposit in a news release dated July 6,\n2005 which may be viewed at www.sedar.com.\nMoe Lindsay stated: \"This acquisition fits Wescan's stated strategy of\nconsolidating property holdings in the LaRonge Greenstone Belt thereby\nidentifying sufficient gold resources in the area to feed a central gold\nprocessing plant. We like this project, particularly at today's gold prices,\nand plan to aggressively advance the Jojay Gold Deposit.\"\nNeil McMillan, the CEO of Claude stated: \"The Jojay Gold Deposit is not\npart of Claude's long term strategic plan but we recognize the deposit as\nbeing at an advanced exploration phase and have every confidence that Wescan\nis in a position to unlock its potential very quickly. Given the quality and\npotential of Wescan as an exploration and development company, we are\ndelighted to participate in the Jojay property's upside as a significant\nshareholder of Wescan.\"\nWescan is also pleased to announce that it has created a wholly owned\nMexican subsidiary, Minera Abundancia, which has been registered in the\nMexican state of Chihuahua. Mr. Lindsay notes that this is another step in\nachieving another part of Wescan's strategic plan of establishing itself in\nthe international mining community. \"Creation of the Mexican entity prepares\nWescan to acquire advanced exploration projects in a very exciting and active\npart of the world that has great potential as witnessed by recent successes of\na number of other Canadian companies in Mexico; we are actively pursuing\nopportunities in Mexico.\...