WESDOME GOLD MINES LTD. ANNOUNCES UP TO C$7 MILLION OFFERING OF SENIOR UNSUBORDINATED CONVERTIBLE DEBENTURES
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISBRITUTION TO U.S. NEWSWIRE SERVICES
TORONTO, ON – Wesdome Gold Mines Ltd. (TSX: WDO) is pleased to announce a proposed non-brokered private placement offering of senior unsubordinated convertible debentures (“Debentures”) in the aggregate principal amount of up to C$7 million (the “Offering”) . The term of the Debentures will be five years from the date of closing of the Offering. The Debentures will bear interest at a rate of 7% per annum payable semi-annually and will be convertible into common shares of the Company at a price of $2.50 per common share. The Company will apply to list the Debentures to be issued under the Offering on the Toronto Stock Exchange. Listing on the TSX is subject to Wesdome fulfilling all of the requirements of such exchange. Wesdome may pay finder’s fees to eligible persons of up to 3% of the aggregate gross proceeds of the Offering in cash.
The Company intends to use the net proceeds from the Offering toward the redemption of its existing debentures having an aggregate principal amount of $11,000,000 and maturing on May 31, 2012.
The Offering is expected to close on or about May18, 2012, and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals such as the approval of the TSX.
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 unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
WESDOME is celebrating its 25th year of continuous mining operations in Canada. It currently has three producing gold mines with wholly-owned mining and milling complexes located in Wawa, Ontario and Val d’Or, Québec. The Company has approximately 101.88 million shares issued and outstanding and trades on the TSX under the symbol “WDO”.
This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the use of proceeds from the Offering. Often, but not always, forward-looking statements can be identified by the use of words such as “plans, “expects”, “is expected”,
“budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words
and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will” be taken, occur or be achieved. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management’s estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements
