West Kirkland - Closes Bought Deal Private Placement For Gross Proceeds Of $7.756 Million
November 22, 2011
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
(VANCOUVER, BRITISH COLUMBIA, November 22, 2011) – West Kirkland Mining Inc. (WKM: TSXV) (“West Kirkland” or the “Company”) is pleased to announce the closing of its bought deal private placement (the “Offering”) announced on October 28, 2011 with a syndicate of underwriters co-led by Haywood Securities Inc. and PI Financial Corp. (together, the “Underwriters”). The Company completed the sale of 5,232,500 units (the “Units”) of the Company at a price of $1.10 per Unit, including the full over-allotment option of an additional 682,500 Units, for gross proceeds of $5,755,750 and 1,575,000 flow-through shares (the “FT Shares”) at a price of $1.27 per FT Share for gross proceeds of $2,000,250.
Each Unit consists of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant is exercisable into one common share of the Company for a period of 12 months from closing at an exercise price of $1.50.
In connection with the Offering, the Underwriters received a cash commission representing 7% of the gross proceeds raised in the Offering and a number of options (the “Compensation Options”) equal to 5% of the securities sold under the Offering. Each Compensation Option is exercisable into one common share of the Company for a period of 12 months from closing at an exercise price of $1.50.
The aggregate proceeds raised from the issuance of the FT Shares will be used for general exploration expenditures, which will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced as of December 31, 2011. The proceeds raised from the Offering will be used for continuing exploration in Nevada near Cortez and Long Canyon, exploration in Kirkland Lake, Ontario and for general corporate purposes. The securities issued in the Offering are subject to a four month hold period in accordance with applicable Canadian securities laws.
About West Kirkland Mining
West Kirkland Mining was formed in 2010 to focus on gold exploration along major trends in North America. The Company has consolidated significant mineral rights positions in the Kirkland Lake area of Ontario and within major gold trends of North Eastern Nevada - two of North America’s premier gold jurisdictions. The founders and Board of West Kirkland Mining have successful gold discovery, development and mine operations experience in both Ontario and Nevada over the past 40 years.
West Kirkland Mining Inc.
Neither the 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.
Disclaimer for Forward-Looking Information
This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the use of proceeds from the Offering and proposed exploration activities. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company’s equity securities, the state of the market for gold or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company’s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company’s profile on SEDAR at www.sedar.com.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person as defined under the U.S. Securities Act unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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