North American Tungsten Corporation Ltd.
TSX VENTURE : NTC

North American Tungsten Corporation Ltd.

October 17, 2005 12:24 ET

North American Tungsten Corporation Announces $5 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 17, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES

North American Tungsten Corporation Ltd. (the "Corporation") (TSX VENTURE:NTC) is pleased to announce that it has entered into an Agreement with Haywood Securities Inc. and Sprott Securities Inc. (the "Agents"), pursuant to which the Agents will offer on a private placement basis, four million (4,000,000) common shares to be issued by the Corporation at a price of $1.25 per common share (the "Offering Price") for gross proceeds of Five Million Dollars ($5,000,000). The proceeds of the offering will be issued by the Corporation for general working capital purposes.

In addition to commission fees payable to the Agents, compensation options will be granted to the Agents for that number of common shares equal to ten percent (10%) of the number of shares issued by the Corporation. Such compensation options shall be exercisable into common shares of the Corporation at a price equal to the Offering Price and have a term of twelve months from the date of closing of the Offering.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

On behalf of the Board of Directors

Stephen M Leahy, Chairman & C.E.O.

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

Contact Information

  • North American Tungsten Corporation Ltd.
    Gregory J. Longphee
    V.P. Corporate Development
    (604) 684-5300
    (604) 684-2992 (FAX)
    www.northamericantungsten.com