SOURCE: MegaMoly Inc.

November 17, 2007 02:41 ET

MegaMoly Inc. -- A New Molybdenum Explorer and Developer Lists on TSX V under the symbol MGY

VANCOUVER, BC--(Marketwire - November 17, 2007) - Westview Commercial Inc. / MegaMoly Inc. (TSX-V: MGY) (the "Company"), is pleased to announce the closing of a reverse take-over transaction (the "Acquisition") pursuant to the Policies of the TSX Venture Exchange ("TSX-V") and the change of the Company's name to "MegaMoly Inc." MegaMoly was formed to identify, evaluate, acquire and develop molybdenum assets worldwide, to become an integrated molybdenum producer and product supplier. MegaMoly's initial asset is the Magura Molybdenum/Tungsten Project in Slovakia, with a number of other acquisitions being considered. Global demand and the price of molybdenum have increased dramatically due to global economic growth and the increase in demand for steel -- MegaMoly is well-positioned to take advantage of these trends.

The Acquisition

Pursuant to the Acquisition, the Company acquired all of the issued and outstanding securities of Magura Holdings s.r.o. a Slovak-incorporated company that owns 100% of the Magura Project from the Vendor, Longview Capital Partners Inc. for aggregate consideration consisting of 20,000,000 common shares and 10,000,000 special warrants of the Company, issued at a price of $0.11 each. Each special warrant will be convertible without payment of additional consideration for one common share of the Company at such time as the Company will not fail to meet the public distribution requirements of the Exchange. A finder's fee of 1,362,000 shares of the Company was paid to a private company for its assistance in locating the Acquisition.

Concurrent Financing

Concurrent with the closing of the Acquisition, the Company will close a private placement of 30 million units at a price of $0.11 per unit to raise gross proceeds of $3.3 million (the "Financing"). Each unit consists of one common share of the Company and one share purchase warrant, with each warrant entitling the holder to acquire an additional common share of the Company at a price of $0.22 per common share for a period of 12 months following the closing of the Acquisition.

The Financing was completed on a non-brokered basis with finder's fees of approximately 850,000 shares of the Company paid on a portion of financing.

About MegaMoly

MegaMoly's strategy is to build shareholder value through acquisition, exploration and development of molybdenum projects around the world. This strategy has been developed by a synthesis of MegaMoly's core skills in project evaluation, structured acquisition, finance, exploration, project development and operations, areas where MegaMoly executives have significant experience.

MegaMoly will employ a 3-pronged strategy to maximise value for shareholders:

* Rapidly develop the wholly-owned Magura Molybdenum/Tungsten Project
* Continues investigations into further acquisitions of molybdenum deposits
and projects
* Execute a strategy of acquiring assets in industries downstream of
primary molybdenum production, to take full advantage of molybdenum demand.

The Magura Project is located in central Slovakia. It hosts a porphyry-style molybdenum-tungsten deposit called Ochtina-Rochovce with inferred resource as follows:

-***-

Ochtina-Rochovce Inferred Resource, August 2006, ACA Howe International
------------------------------------------------------------------------
Limite0.04% Cut-off Grade     Tonnes        Grade      Contained Metal
------------------------------------------------------------------------
Molybdenum                  125,134,000     0.062%     171.0 million lbs
------------------------------------------------------------------------
Tungsten                     30,243,000     0.046%      30.7 million lbs
------------------------------------------------------------------------

-****-

ACA Howe reported, "Clearly, potential exists at Ochtina-Rochovce to upgrade both the tonnage and grade of the deposit with further drilling..." MegaMoly plans to implement a two-phase $2.1 million program on the Magura Project to include 10,000 metres of in-fill and step-out drilling in order to advance the project towards a decision to proceed to a pre-feasibility study. See Westview's Filing Statement dated September 21, 2007 or the full technical report (also posted on SEDAR Sept 21) for further details.

Molybdenum is used primarily as an alloying agent to enhance the strength, toughness and corrosion resistance of steel. It also has unique chemical and lubricating qualities. Current market price for molybdenum is US$34 per pound. Tungsten is used in cemented carbides (tool-bits), alloys and is common in households as the filament in light bulbs. Its current price is US$15 per pound.

Slovakia is an EU country and a member of NATO that lies in the middle of Europe, bordering Austria, Czech Republic, Poland, Ukraine and Hungary. MegaMoly holds an exploration licence measuring 22 square kilometres and includes a 1.5 square-kilometre protected mineral deposit area that covers the existing deposit. The licence is accessible by paved road from Roznava, a historic mining town with a population of 19,000. Elevation ranges from 325 metres to 883 metres above sea level and the climate is temperate, similar to that of Southern Ontario or New York State.

Corporate Matters

At the Company's annual general meeting held November 5, 2007, Randy Clifford, Stephen Stine, Garry Stock, Arni Johannson and Damien Reynolds were appointed to the board of directors. Mr. Stine has been appointed President and CEO and Mr. Stock has been appointed CFO. A continuation of the Company from the province of Alberta to the Province of British Columbia, along with the change of the Company's name to MegaMoly Inc. was also approved.

Please refer to the Company's September 21, 2007 Filing Statement for further information about MegaMoly, and for further details respecting the Acquisition, Financing and related transactions. A copy of the Filing Statement is available under the Company's profile at www.sedar.com.

On behalf of the Board of Directors,
"Stephen Stine"
President, Chief Executive Officer and Director

These securities have not been registered under the United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state, and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.

Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. Such statements are based on numerous assumptions and are subject to all the risks and uncertainties inherent in the Company's business, including risks related to mineral exploration and development. Consequently, actual results may vary materially from those described in the forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

This news release is not for dissemination in the United States or through United States newswire services

Contact Information

  • For further information please contact:
    Stephen Stine
    Telephone: +604 688 8316
    Email: Email Contact