International Wayside Gold Mines Ltd.

International Wayside Gold Mines Ltd.

October 16, 2006 08:37 ET

International Wayside Gold Mines Ltd.: $3,000,000 Flow-Through Brokered Private Placement and Minimum $3,500,000 Non-Flow-Through Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - The Board of Directors of International Wayside Gold Mines Ltd. (TSX VENTURE:WGM) (FWB:IWUA) (the "Company") is pleased to announce that the Company has engaged Octagon Capital Corporation ("Octagon") as agent, whereby Octagon will use its commercially reasonable efforts to complete a private placement on behalf of the Company of up to $3,000,000 of flow-through common shares ("FT Shares") at the price of $0.25 per FT Share and, at the option of Octagon, this financing may be increased for additional gross proceeds of up to $2,000,000 of FT Shares (the "FT Over-allotment"), and, additionally, a minimum of $3,500,000 non-flow-through common shares (the "NFT Shares") to a maximum of $7,500,000 will be sold (the "Offering"). Gross proceeds from the sale of the FT Shares will be used for exploration on the Company's Cariboo Gold Project. Net proceeds from the sale of the NFT Shares will be used for: (i) final payment to Mosquito Consolidated Gold Mines Limited as per the Company's Option Agreement (see News Release #03-10); (ii) payment of the Lions Gate Energy Inc. property acquisition (see News Release #06-01 and 06-02); (iii) payment of the Company's reclamation bonds for the bulk sample and mine permit; and (iv) general working capital purposes.

As compensation for conducting the Offering, Octagon will be entitled to a cash commission in the amount of 8% of the aggregate gross proceeds of the Offering, and an agent's option entitling Octagon to purchase an amount of NFT Shares equal to up to 8% of the total NFT and FT Shares sold by Octagon.

The Offering and FT Over-allotment is subject to completion of Octagon's review of the Company and acceptance of the TSX Venture Exchange. All securities to be issued shall be subject to a four month and one day hold period.

The Company's 100% optioned property "The Cariboo Gold Project" encompasses 574.8 km2 and is located at Wells near Barkerville Historic Town in central British Columbia, the terminus of the Cariboo Gold Rush of the 1860's. In the Barkerville Camp, 79 creeks have reported placer gold production. Recorded production from the Cariboo Gold Camp is 3.8 million ounces of gold, including 2.6 million ounces from placer mining and 1.2 million ounces from lode mining.

On Behalf of the Board of Directors

J. Frank Callaghan, President and CEO

This news release contains forward-looking statements regarding the timing and content of upcoming programs. Actual results may differ materially from those currently anticipated in such statements.

News Release 06-42

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this Release.

Contact Information

  • International Wayside Gold Mines Ltd.
    J. Frank Callaghan
    President and CEO
    (604) 669-6463 or Toll Free: 1-800-663-9688
    (604) 669-3041 (FAX)