Western Keltic Mines Inc.
TSX VENTURE : WKM

Western Keltic Mines Inc.

May 12, 2006 09:28 ET

Western Keltic Arranges $9,100,000 Brokered and $1,950,000 Concurrent Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2006) - Western Keltic Mines Inc. (TSX VENTURE:WKM) -

This news release, required by applicable Canadian laws, is not for distribution to U.S. newswire services or for dissemination in the United States, and does not constitute an offer of the securities described herein.

Western Keltic Mines Inc. wishes to announce that the Company has arranged a $9,100,000 brokered private placement financing on a best-efforts basis with a syndicate co-led by Haywood Securities Inc. and Blackmont Capital Inc. (the "Agents"). The Company will sell 14,000,000 units at a price of $0.65 per unit for total gross proceeds of $9,100,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase an additional common share of the Company for a period of 12 months from the closing of the private placement at a price of $0.80 per common share.

The Agents will be paid a cash commission equal to 7.5 per cent of the gross proceeds raised in the offering. In addition, the agents will receive Agent's Warrants equal to 10 per cent of the number of units sold under the offering. Each Agent's Warrant will entitle the holder to purchase one common share of the Company for a period of 12 months from the closing of the private placement at a price of $0.74 per common share.

The concurrent non-brokered financing will be for the sale of 3,000,000 units on the same terms as the brokered private placement for gross proceeds of $1,950,000. A finders fee shall be payable in accordance with TSX Venture Exchange rules and regulations.

Subject to receipt of all necessary regulatory approvals and the satisfaction of other customary closing conditions, it is expected the financings will close on or about June 2, 2006. All of the securities issued in connection with the private placement will be subject to a four-month hold period from the date of issue.

Net proceeds from the private placement will be used for advancement of the Kutcho Creek copper-zinc project and for general working capital.

Western Keltic Mines Inc. is a mineral exploration and development company whose principal asset is the Kutcho Creek copper-zinc massive sulphide project, near Dease Lake northwestern British Columbia. Mine permitting is currently underway through the BC Environmental Assessment Office as are feasibility stage studies on pit design, metallurgy, plant and process.

On behalf of the Board of Directors

WESTERN KELTIC MINES INC.

John McConnell, President & CEO

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

Contact Information

  • Western Keltic Mines Inc.
    John McConnell
    (604) 682-8414 or 1-800-501-1201
    (604) 682-3727 (FAX)
    www.keltic.com