Stock Symbol: WGF: TSX-VEN
SASKATOON, SK, Aug. 31 /CNW/ - M. F. (Moe) Lindsay, President of Wescan
Goldfields Inc. ("Wescan") is pleased to announce that Wescan has signed a
Letter of Intent ("LOI") with Claude Resources Inc. ("Claude") to acquire
Claude's 75% of the Jojay Gold Deposit to hold 100% of the property. The Jojay
Gold Deposit was formerly held by Wescan (25% and operator) and Claude (75%)
under a Joint Venture agreement. Under the terms of the LOI, subject to
regulatory approval, Wescan will acquire Claude's interest by the issuance of
three and one half million (3.5 M) Wescan common shares.
The Jojay Gold Deposit is located in the LaRonge Greenstone Belt of
northern Saskatchewan. Wescan previously disclosed historical resource
estimate information on the Jojay Gold Deposit in a news release dated July 6,
2005 which may be viewed at www.sedar.com.
Moe Lindsay stated: "This acquisition fits Wescan's stated strategy of
consolidating property holdings in the LaRonge Greenstone Belt thereby
identifying sufficient gold resources in the area to feed a central gold
processing plant. We like this project, particularly at today's gold prices,
and plan to aggressively advance the Jojay Gold Deposit."
Neil McMillan, the CEO of Claude stated: "The Jojay Gold Deposit is not
part of Claude's long term strategic plan but we recognize the deposit as
being at an advanced exploration phase and have every confidence that Wescan
is in a position to unlock its potential very quickly. Given the quality and
potential of Wescan as an exploration and development company, we are
delighted to participate in the Jojay property's upside as a significant
shareholder of Wescan."
Wescan is also pleased to announce that it has created a wholly owned
Mexican subsidiary, Minera Abundancia, which has been registered in the
Mexican state of Chihuahua. Mr. Lindsay notes that this is another step in
achieving another part of Wescan's strategic plan of establishing itself in
the international mining community. "Creation of the Mexican entity prepares
Wescan to acquire advanced exploration projects in a very exciting and active
part of the world that has great potential as witnessed by recent successes of
a number of other Canadian companies in Mexico; we are actively pursuing
opportunities in Mexico."
Wescan is a Canadian based corporation engaged in the acquisition,
exploration and development of mineral properties. Shares of the Company trade
on the TSX Venture Exchange under the trading symbol "WGF".
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."
