Pacific Wildcat Resources Corp.
TSX VENTURE : PAW

Pacific Wildcat Resources Corp.

January 10, 2011 09:15 ET

Pacific Wildcat Resources Corp.: Closing of First Tranche of Brokered Private Placement With Macquarie Private Wealth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2011) -

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

Pacific Wildcat Resources Corp. (TSX VENTURE:PAW) ("PAW" or the "Company") wishes to announce the closing of the first tranche of the brokered private placement (the "Financing") see Press Release titled "LETTER OF ENGAGEMENT SIGNED WITH MACQUARIE PRIVATE WEALTH" dated July 23rd, 2010.

Tranche one of the Financing included the issuance of 7,262,400 units (each a "Unit") at a purchase price of $0.22 per unit for gross proceeds of $1,597,728. Each Unit comprises of one (1) common share and one half (1/2) of a non-transferable common share purchase warrant. Each full warrant (a "Warrant") entitles the purchaser to purchase one Common Share at a purchase price of $0.30 per share, at any time within eighteen months from the Closing Date of the Offering, subject to an accelerated expiry date in certain circumstances.

Macquarie Private Wealth Inc. ("Macquarie") was engaged by the Company as the agent in connection with the Financing. In consideration for the services provided by Macquarie to the Company, the Company paid to Macquarie a cash commission of $124,298 as well as an aggregate of 580,992 broker units (each a "Broker Unit"). Each Broker Unit entitles Macquarie to purchase, at any time within eighteen months from the Closing Date of the Offering, one Unit at a purchase price of $ 0.22 per Unit.

In accordance with Canadian securities legislation currently in effect, the securities issued pursuant to the Financing will have a restricted "hold" period in Canada expiring on May 8, 2011.

Subject to finalizing due diligence on the Mrima Hill Rare Earth and Niobium Project (see Press Release titled "PAW enters into Conditional Purchase Agreement with the Right to Acquire the Majority of a Large Scale Niobium/Rare Earth Metal Project" dated July 23rd, 2010) it is expected the balance of the brokered private placement will close in the final two weeks of January 2011.

In addition and by way of separate arrangement PAW is pleased to announce, subject to TSXV acceptance, it has entered into an agreement for a non brokered private placement with a high net worth individual. The non brokered private placement is for 1,000,000 units at a price of $0.90 for gross proceeds to the Company of $900.000. Each Unit will comprise of one (1) common share and one half (1/2) of a non-transferable common share purchase warrant. Each full warrant will entitle the purchaser to purchase one Common Share at a purchase price of $1.10 per share, at any time within eighteen months from the Closing Date of the Offering. The non-brokered private placement is expected to take place in the next two weeks.

The proceeds of both tranche one of the brokered financing and the non brokered financing will be used to purchase further capital equipment for the Company's Muiane Tantalum project in Mozambique and for funds to facilitate the initial closing of the Mrima Hill Rare Earth and Niobium Project conditional purchase agreement.

The Company is looking to commission its Tantalum operation at Muiane in Mozambique prior to the end of February 2011 and expects to ramp up to steady state production by the middle of 2011. The following photograph shows the primary processing plant on site: http://media3.marketwire.com/docs/paw19.pdf.

PAW's President Mr. Darren Townsend commented, "We are looking forward to commencing initial Tantalum production in Mozambique in the near term. We are also very excited with working towards completing the due diligence on the Mrima project and as previously reported we aim for initial closing to take place in the final two weeks of January 2011."

ON BEHALF OF THE BOARD OF DIRECTORS OF PACIFIC WILDCAT RESOURCES CORP.

Darren Townsend, President

Investors are cautioned that trading in the securities of Pacific Wildcat Inc. should be considered highly speculative.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Wildcat Resources Corp.
    Darren Townsend
    President
    1-888-860-2666
    250-768-0020 (FAX)
    www.pacificwildcat.com