Far West Mining Ltd.
TSX : FWM

Far West Mining Ltd.

October 16, 2009 21:18 ET

Far West Mining Ltd. Announces CDN $10,000,000 Private Placement with Quadra Mining Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire – Oct. 16, 2009) - Far West Mining Ltd. (the "Company") (TSX:FWM) is pleased to announce that it has agreed to a financing in the amount of C$10,000,000 with Quadra Mining Ltd. ("Quadra")(QUA:TSX).

The financing is a private placement of 4,901,961 Units at a price of C$2.04 per Unit for total proceeds of C$10,000,000 and is scheduled to close on or about October 30, 2009 and not later than November 13, 2009 ("Closing Date") and is subject to the acceptance by the Toronto Stock Exchange ("TSX"). Each Unit consists of one common share of the Company (a "Share") and one transferable common share purchase warrant (a "Purchase Warrant"). Each Purchase Warrant will entitle the holder to purchase one Share for a period of 24 months after the Closing Date at an exercise price of C$2.75. No commissions or finders fees are payable in connection with this placement.

The Company is a reporting issuer under the securities legislation of the Provinces of British Columbia, Alberta and Ontario. The Shares, Purchase Warrants, and the shares issuable upon the exercise of the Purchase Warrants, will not be subject to any hold or restricted period in Canada that extends beyond four months and one day after the Closing Date.

The proceeds of the financing will be used to progress the development of Far West's copper-iron-gold Santo Domingo Property in Region III Chile and will include additional drilling and metallurgical testing. A technical advisory committee will be formed between Quadra and the Company to monitor the progress of and provide additional expertise to development of the project. Plans are to bring the property to pre-feasibility study status. Quadra shall be granted anti-dilution rights to maintain its level of investment in the Company. On closing of the private placement Quadra will hold a 7.9% equity interest in the Company increasing up to 14.64% if all Purchase Warrants are exercised.

The Santo Domingo property hosts a NI 43-101 compliant indicated resource of 383 million tonnes at 0.39% Cu, 27% Fe, and 0.05gpt Au and a further 68.8 million tonnes at 0.26% Cu, 24.6% Fe and 0.04gpt Au in the inferred category. Not included in these figures, but also NI 43-101 compliant, are a further 32 million tonnes of mainly oxide mineralization in the Estrellita deposit at 0.55% CuT and 0.05gpt Au. The project is well located near to existing infrastructure, 60km west of Codelco's Potrerillos smelter, 60km east of the port of Chanaral, and is 70km south of Quadra's Franke mine.

Quadra is a British Columbia corporation based in Vancouver and is a mining company whose principal assets are the Robinson Mine in Nevada, producing copper and gold, the Carlota Mine in Arizona, producing copper cathode, the Franke SX/EW heap leach project in northern Chile undergoing commissioning testing, the Sierra Gorda advanced exploration copper-molybdenum project in Chile and the Malmbjerg molybdenum development project in Greenland. The company has the goal of becoming a mid-tier base metals development and operating company with interests in a number of advanced exploration, development and producing properties.

Rick Zimmer, President and CEO, says, "We are extremely happy to be associated with such a dynamic and development driven company and we look forward to progressing the Santo Domingo property to the next phase of development with them."

The in-house qualified person is Richard N. Zimmer, P.Eng., Chief Executive Officer, President and a director of Far West who has reviewed and approved the contents of this news release.

Far West Mining Ltd. is an international mineral exploration company engaged in the evaluation, acquisition, exploration and development of mining properties in Chile and Australia. For further information, investors should review the Company's filings that are available at www.farwestmining.com and www.sedar.com.

FAR WEST MINING LTD.

Richard N. Zimmer, P.Eng., President and C.E.O.

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 events or developments that the Company expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. 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, and 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. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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

Contact Information

  • Far West Mining Ltd.
    Rick Zimmer
    President and CEO
    (604) 602-9144
    or
    Far West Mining Ltd.
    Iain MacPhail
    CFO
    (604) 602-9144
    www.farwestmining.com