Far West Mining Ltd.

Far West Mining Ltd.

October 24, 2006 13:27 ET

Far West Mining Ltd. Announces Closing of $10 Million Brokered Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 24, 2006) -


This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless an exemption from such registration is available.

Far West Mining Ltd. (TSX:FWM) ("Far West" or the "Company") is pleased to announce that the financing announced October 2, 2006 has closed. A syndicate of Underwriters, led by Blackmont Capital Inc. ("Blackmont") and including Research Capital Corp. placed on bought-deal basis 2,670,000 units ("Units") in the capital of Far West, at a price of $3.75 per Unit, for gross proceeds to Far West of $10,012,500 ("Offering"). Each Unit consisted of one common share of the Company and one-half of a common share purchase warrant. Each full warrant entitles the holder to purchase one common share at a price of $5.00 until April 24, 2008.

A commission equal to 6.5% of the gross proceeds raised from the Offering was paid to the Underwriters. The Underwriters were also granted a non-transferable option to acquire 267,000 Units at a price of $3.75 per Unit, having the same terms as the subscribers' Units issued pursuant to the Offering. All of the securities have a hold period until February 25, 2007.

The proceeds raised from the Offering shall be used, principally, for further exploration and development of the Company's South American and Australian properties and general corporate purposes.

No regulatory authority has approved or disapproved the information contained in this news release. The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Forward Looking Statement

This release includes certain statements that may be deemed "forward-looking statements". Other than statements of historical fact all statements in this release that address future production, reserve or resource potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Far West, Investors should review Far West's filings that are available at www.sedar.com.

For further information investors should review the Company's filings that are available at www.sedar.com or contact Robert Hindson, President and Chief Executive Officer, or Iain MacPhail, Chief Financial Officer at (604) 602-9144.

Contact Information

  • Far West Mining Ltd.
    Robert Hindson
    President and Chief Executive Officer
    (604) 602-9144
    Far West Mining Ltd.
    Iain MacPhail
    Chief Financial Officer
    (604) 602-9144
    Website: www.farwestmining.com