Western Keltic Mines Inc.
TSX VENTURE : WKM

Western Keltic Mines Inc.

October 30, 2007 21:19 ET

Western Keltic Mines Inc. Announces $30 Million Equity Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2007) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Western Keltic Mines Inc. (TSX VENTURE:WKM) (the "Company" or "Western Keltic") is pleased to announce that it has filed a preliminary short form prospectus for a brokered, best-efforts offering (the "Offering") of units (the "Units") with a syndicate lead by Paradigm Capital Inc. and including Haywood Securities Inc., and Genuity Capital Markets (the "Agents"). Net proceeds of the Offering will be used to fund the Kutcho Project Feasibility Study, provide working capital and allow long-lead equipment procurement and detailed engineering programs to proceed in parallel.

John McConnell, President and CEO of Western Keltic, said: "We believe that the best way to deliver value to our shareholders is to bring the Kutcho Project to a near-term production decision. This financing will allow us to do that and position Kutcho as Canada's next major copper mine."

Each Unit will consist of one Common Share and one-half of one Common Share purchase warrant (a "Warrant"), exercisable to purchase an additional common share for 24 months from the closing date of the Offering. The Unit offering price (the "Issue Price") and the Warrant exercise price will be determined in the context of the market at the time the final prospectus is filed. The Agents will have the option (the "Over-Allotment Option"), exercisable in whole or in part, to arrange for the purchase of up to an additional $4,500,000 of Units at the Issue Price until 12:00 PM (eastern time) two days prior to the closing date of the Offering.

The Agents will receive a cash commission equal to up to 6% of the gross proceeds of the Offering, payable on the closing date. In addition, Western Keltic shall grant the Agents such number of compensation options to acquire that number of units which is equal to up to 6% of the aggregate number of Units issued and sold under the Offering. Each compensation option shall be exercisable for a period of 24 months following the closing date at an exercise price per unit equal to the Issue Price.

Subject to receipt of all necessary regulatory approvals and the satisfaction of other customary closing conditions, it is expected that the Offering will close on or about November 27, 2007.

The Kutcho Project is in northwestern BC, 100 km east of Dease Lake. Wardrop Engineering Inc. has been commissioned to complete a Feasibility Study on the Project in Q2 2008. If the Feasibility Study is positive, and subject to the receipt of required permits and capital financing, construction could commence in 2008 with commercial production in 2010.

The Units, Warrants and Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. This news release does not constitute an offer for sale of the Units in the United States.

Western Keltic Mines Inc. is focused on the development of the Kutcho Project. The Company is led by an experienced management team with a track record for the responsible permitting, development and operation of mines in northern Canada. Western Keltic is based in Vancouver, Canada and is listed on the TSX Venture Exchange under the symbol "WKM". Visit www.westernkeltic.com for more information.

On behalf of the Board of Directors

Western Keltic Mines Inc.

John McConnell, President and CEO

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature 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. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed form time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. 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. Accordingly, readers should not place undue reliance on forward-looking statements.

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

Contact Information

  • Western Keltic Mines Inc.
    Amielle Lake
    VP Corporate Communications and Business Development
    (604) 682-8414 or 1-800-501-1201
    Website: www.westernkeltic.com