Pacific Wildcat Resources Corp.

Pacific Wildcat Resources Corp.

August 09, 2011 09:00 ET

PAW Announces Closing of Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 9, 2011) - Pacific Wildcat Resources Corp. (TSX VENTURE:PAW) ("PAW" or the "Company") wishes to announce the closing of the non-brokered private placement (the "Financing") as previously announced in the Press Release titled "PAW Announces Non Brokered Private Placement" and dated 19th July 2011.

The non-brokered private placement resulted in the issuance of 8,570,606 Units at a price of $0.65 for gross proceeds to the Company of CDN $5,570,894. Each Unit consists of one common share and one half of one common share warrant (each whole warrant a "Warrant"), entitling the holder to acquire one additional common share at a price of $1.00 for 18 months from Closing. The Warrants are subject to an accelerated expiry which comes into effect once the shares trade above a weighted average price of $1.25 for any twenty consecutive trading-day period, subsequent to four months and a day from Closing ("Accelerated Expiry"). In the event of an Accelerated Expiry, the expiry date will be the earlier of the regular 18 month expiry date and 30 days from the date the Company advises the placees of the Accelerated Expiry.

Finders' fees of 6% cash and 6% warrants ("Finders Warrant") were paid on a portion of the Financing, in accordance with the policies of the Exchange. Each Finders Warrant entitles the holder to purchase one common share (a "Finders Share") at a price of $0.65 per Finder Share for a period of 18 months from issuance and on the same terms as the Warrants for aggregate cash payments of CDN $312,856 and 481,317 Finders Warrants.

The net proceeds from this private placement will be used to further advance the acquisition of the Company's interest in its Mrima Hill Project in Kenya, continued development at its Muaine Tantalum Project in Mozambique and for general working capital purposes.

In accordance with securities legislation currently in effect, the Shares, the Warrants and the Warrant Shares issued pursuant to the Financing will have a restricted "hold" period of four months plus one day from the date of issuance of the Financing.

The Company is also pleased to announce the receipt of CAD $958,724 during June and July 2011 from the early exercise of warrants. In addition, as a potential funding source, PAW still has 7,932,550 (CAD $2,379,765) in the money 30 cent warrants.

PAW's President Mr. Darren Townsend commented, "The combination of the completion of this placement and the in the money nature of PAW's warrant position leaves the Company well-funded for the completion of the current 1,500 metres diamond drilling program testing depth extensions to the Mrima Hill Niobium and Rare Earth deposit. In addition the Company is planning, subject to receiving applicable approvals, to commence a 6,000 metre Rare Earth resource drilling program in the December quarter. We look forward to this important phase of work for the Mrima Hill project, the completion of which should allow the Company to progress into feasibility studies in 2012."


Darren Townsend, President

Investors are cautioned that trading in the securities of Pacific Wildcat Resources Corp. should be considered highly speculative. Cautionary note: This press release contains forward looking statements, particularly those regarding cash flow, capital expenditures, work programs, the estimation of mineral resources and the Company's plans with respect to the exploration and development of its projects and its investment plans. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. There can be no assurance that the Company will be able to obtain a mining licence or any of the permits that are required in order to commence mining operations at the Mrima Hill Project.

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.

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