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Wescan completes private placement for gross proceeds of $2,070,750
Wescan completes private placement for gross proceeds of $2,070,750.
About this update from Wescan Goldfields Inc.
[{"type":"text","content":"\n\n\n\nStock Symbol: WGF: TSX-VEN\n\n\nSASKATOON, Dec. 21 /CNW/ - Maurice Lindsay, President of Wescan\nGoldfields Inc. (\"Wescan\" or the \"Corporation\"), reports that Wescan has\ncompleted, subject to final regulatory approval, a non-brokered private\nplacement of 5,916,428 Units of Wescan at a price of $0.35 per Unit on\nDecember 19, 2006. Gross proceeds of $2,070,750 were received from the Unit\noffering from subscribers resident in Alberta, Saskatchewan and Ontario. Each\nUnit consists of one common share and one half of one common share purchase\nwarrant. Each whole warrant is exercisable into one common share for a period\nof 12 months from the closing date upon payment by the holder of $0.45 per\nshare.\n\n\nWescan will pay $31,038 in finders' fees, equal to 5 per cent of the\ngross proceeds raised by a finder under the offerings and will issue 66,194\nfinders' warrants equal to 5 percent of the gross proceeds sold by such finder\npursuant to the offering. Each finders' warrant will entitle the holder to\nacquire one common share at an exercise price of $0.45 per share for a period\nof 12 months following the closing date. All securities will be subject to a\nfour month hold period in accordance with applicable securities laws and\nexchange regulations.\n\n\nShore Gold Inc., an insider of Wescan, participated in the Unit offering\nand increased its shareholdings from approximately 16% to approximately 19.5%\nof Wescan's issued and outstanding common shares. The board of directors of\nthe Corporation reviewed Shore's participation in the Unit offering and\ndetermined that Shore's increase in shareholdings did not represent a change\nof control and was in the best interest of the Corporation. Neither the\nCorporation nor Shore has knowledge of any material information concerning the\nCorporation that has not been generally disclosed. The Corporation is relying\non 5.5(2) and 5.7(2) of OSC Rule 61-501 with respect to exemptions from the\nformal valuation requirement and the minority approval requirement thereunder.\n\n\nProceeds will be applied to further exploration including drilling on\nWescan's 100% owned Jojay and Fork Lake (which includes the former producing\nJasper Gold Mine) properties, for further exploration of the Company's 50%\nowned uranium prospecting permits in the Athabasca Basin, for exploration on\nthe ...