Chieftain Metals Corp.

Chieftain Metals Corp.

September 24, 2013 17:25 ET

Chieftain Closes Remaining Tranche of Convertible Debenture Financing

TORONTO, ONTARIO--(Marketwired - Sept. 24, 2013) - Chieftain Metals Corp. (TSX:CFB) ("Chieftain" or "the Company") is pleased to announce that it has completed the second tranche of a non-brokered private placement of unsecured convertible debentures in the principal amount of $1,000,000 to a fund managed by West Face Capital Inc. ("West Face") after obtaining written consents from a majority of shares held by disinterested shareholders of the Company representing 58.6% of the disinterested shares and to permit a director to participate in the Company's flow-through private placement. Chieftain issued an additional 31,250 flow-through shares to the director at $0.80 per share for gross proceeds of $25,000. All proceeds from the flow-through private placement and part of the proceeds of the second tranche of the West Face debenture issuance will be used to finance a portion of the Company's 2013 exploration campaign and the remaining proceeds from the West Face debenture issuance will be used for general corporate purposes.

Mr. Victor Wyprysky, President and CEO of the Company stated, "We are pleased to close the second tranche of the convertible debenture with West Face. On behalf of Chieftain, I would like to thank all the shareholders who supported this initiative."

As stated in the Company's press releases of August 15, 2013 and September 13, 2013, the convertible debentures mature on August 31, 2016, bear interest at a rate of 8% per annum and are convertible into common shares of the Company at the option of the holder at a conversion price of $1.00 principal per common share (subject to adjustment). The conversion price represents a premium of 49% over the September 24 closing price of the Company's common shares on the Toronto Stock Exchange. To the Company's knowledge, following completion of the private placements today, West Face owns, or controls or directs, directly or indirectly, approximately 24.9% of the Company's outstanding common shares (calculated on an undiluted basis, and representing approximately 31.3% of the Company's outstanding common shares calculated on a partially-diluted basis after giving effect to the exercise of the West Face warrants and the conversion of the convertible debentures).

About Chieftain Metals Corp.:

Chieftain Metals Corp. is the public holding company of Chieftain Metals Inc. ("Chieftain Inc."), whose principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the Company's business has focused entirely on the acquisition, and thereafter the development, of the Tulsequah Chief Polymetallic Project, in north-western British Columbia, Canada. Chieftain Metals Inc.'s property consists of 55 mineral claims and Crown-grants covering approximately 30,581 hectares and covers two previously producing mines. For more information on Tulsequah and related projects, please refer to the NI 43-101 compliant technical reports, being "Technical Report for the Tulsequah Chief Project of Northern British Columbia, Canada" with an effective date of December 12, 2012 as well as "Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia" and "Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia", each dated as of November 8, 2010, which are available under the Company's profile on SEDAR (

About West Face Capital Inc.

West Face Capital Inc. ("West Face Capital") is one of Canada's leading alternative investment managers with approximately C$2.6 billion in assets under management. West Face Capital is active in a wide range of strategies, including providing bespoke capital solutions to companies with unique opportunities. West Face Capital's capabilities are underpinned by a seasoned multi-disciplinary investment team, proprietary origination channels and deep sector expertise, both domestically and internationally.

Forward-Looking Information:
This press release contains forward-looking information. This forward-looking information includes statements with respect to, among other things, the proposed use of proceeds from the financings described herein and the proposed development of the Tulsequah Chief project, Big Bull and the Company's other mineral properties. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of minerals properties, the inherent volatility of metal prices, the risk that the Company may not be able to complete additional financing or arrange the necessary additional financing to construct and operate the Tulsequah Chief mine, the possibility of delays in the commencement of production from the Tulsequah Chief mine and other factors. Readers are cautioned to not place undue reliance on forward-looking information because it is possible that predictions, forecasts, projections and other forms of forward-looking information will not be achieved by the Company. The forward-looking information contained herein is made as of the date hereof and the Company assumes no responsibility to update or revise it to reflect new events or circumstances, except as required by law.

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