Far West Mining Ltd.
TSX : FWM

Far West Mining Ltd.

December 21, 2007 12:36 ET

Far West Mining Closes Non-Brokered Private Placement for $3,232,800

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2007) - Far West Mining Ltd. (TSX:FWM) (the "Company") is pleased to announce the closing today of the non-brokered private placement announced in its press release dated December 13, 2007. The original placement of 750,000 units ("Units") was oversubscribed, and the Company accepted subscriptions for a total of 808,200 Units at a price of $4.00 per Unit for aggregate gross proceeds of $3,232,800. Each Unit consists of one common share and one-half of one transferable common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one additional common share for 30 months following closing at an exercise price of $5.25. If the Company's common shares trade on the Toronto Stock Exchange at a closing price greater than $6.50 per share for twenty consecutive trading days at any time after four months and one day from the closing date, the Company may accelerate the expiry of the Warrants by giving notice to the holders thereof, and in such case the Warrants will expire on the 30th day after the date on which such notice is given.

The Company paid commissions of $161,640, equal to 5% of the gross proceeds from the sale of Units, to finders of purchasers of Units ("Finders"), and issued 40,410 non-transferable warrants ("Finders Warrants") to Finders, equal to 5% of the number of Units sold. Each Finders Warrant entitles the holder to purchase a common share of the Company at $5.25 for 30 months from the closing date.

The net proceeds of the private placement will be used to further explore and develop the Company's properties in Chile, Australia, and Argentina, and for general working capital.

All of the securities will be subject to a four month and one day hold period in Canada following the closing date. The private placement is subject to final acceptance by the Toronto Stock Exchange.

Far West Mining Ltd. is an international mineral exploration company engaged in the evaluation, acquisition, exploration and development of mining properties. The Company has current operations in Chile (100% Far West) and is exploring in Argentina and Australia in a joint venture relationship with BHP Billiton.

FAR WEST MINING LTD.

Robert E. Hindson, P.Eng., President and C.E.O.

For further information investors should review the Company's filings that are available at www.sedar.com.

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and other events or developments that the Company expects to occur are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Far West Mining Ltd.
    Robert E. Hindson
    President & CEO
    (604) 602-9144
    or
    Far West Mining Ltd.
    Iain MacPhail
    CFO
    (604) 602-9144
    Website: www.farwestmining.com