Far West Mining Ltd.
TSX : FWM

Far West Mining Ltd.

September 21, 2010 08:16 ET

Far West Announces $10,000,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2010) - Far West Mining Ltd. (the "Company") (TSX:FWM) is pleased to announce that it has agreed to a financing totalling $10,000,000 with the Pacific Road Resources Funds ("PRRF").

The financing is a private placement ("Financing") of 2,439,025 units ("Units") at a price of $4.10 per Unit for total proceeds of $10,000,000 and is scheduled to close on or about October 15, 2010 ("Closing Date"), subject to customary closing conditions, including 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 "Warrant").

Each Warrant will entitle the holder to purchase one Share for a period of two years after the Closing Date at an exercise price of $5.35 during the first year and at an exercise price of $5.85 during the second year. The Warrants will not be listed for trading. The Company will pay a transaction fee of 2.5% to Pacific Road Capital Management ("PRCM"), advisor to PRRF with respect to this Financing. No other commissions or finder's fees are payable in connection with this Financing.

The proceeds of the Financing will be used for development of the Santo Domingo Property in Chile and for exploration and working capital. PRRF will be granted anti-dilution rights to maintain their level of investment in the Company. On closing of the Financing PRRF will hold an equity interest of 8.65% in the Company, increasing up to a maximum of 11.96% if all Warrants issued as part of this placement are exercised.

Rick Zimmer, President & CEO, noted that "PRRF made an initial investment in the Company in 2008. We are very pleased that PRRF are increasing their investment during this important phase of development while the Company pursues strategic transactions."

The Company is a reporting issuer under the securities legislation of the Provinces of British Columbia, Alberta and Ontario. The Shares and 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.

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 or contact Rick Zimmer, President & CEO or Iain MacPhail, CFO at (604) 602-9144.

The Pacific Road Resources Funds are private equity funds investing in the global mining industry. They provide expansion and buyout capital for mining projects, mining-related infrastructure and mining services businesses located throughout resource-rich regions of the world. The Pacific Road Resources Funds are managed and advised by PRCM. The PRCM team, located in Sydney, Australia and San Francisco, USA, is comprised of experienced investment professionals that have extensive knowledge and experience in the mining and infrastructure sectors, including considerable operating, project development, transactional and investment banking experience. For further information about the Pacific Road Resources Funds and PRCM, please go to their website at www.pacroad.com.au.

FAR WEST MINING LTD.

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

This news release contains statements that constitute "forward-looking statements" within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements") . Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting" and "intend" and statements that an event or result "may", "will", "should", "could", or "might" occur or be achieved and other similar expressions.

Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. 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 Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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