Waymar Resources Ltd.
TSX VENTURE : WYM

Waymar Resources Ltd.

January 24, 2011 08:10 ET

Waymar Resources Announces C$11 Million Financing

TORONTO, ONTARIO--(Marketwire - Jan. 24, 2011) -

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Waymar Resources Ltd. (TSX VENTURE:WYM) ("Waymar") is pleased to announce that it has engaged a syndicate of agents co-led by GMP Securities L.P. and PowerOne Capital Markets Limited and including Clarus Securities Inc. and Jennings Capital Inc. (collectively, the "Agents") to complete a private placement financing on a best efforts basis (the "Offering") by issuing up to 10,000,000 units ("Units") at a price of C$1.10 per Unit, for aggregate gross proceeds of up to C$11,000,000. The Agents have an option exercisable up to 48 hours before closing to increase the size of the Offering by up to 15% (C$1,650,000) to C$12,650,000.

Each Unit will consist of one common share and one-half of one share purchase warrant of Waymar (each whole such share purchase warrant, a "Warrant"), with each Warrant entitling the holder thereof to acquire one additional common share of Waymar for a period of 24 months at an exercise price of C$1.50 per share, provided that if the volume weighted average price of the common shares of Waymar is equal to or higher than C$2.50 per share for a period of 20 consecutive trading days at any time after four months and one day after the closing, Waymar may accelerate the expiry date of the Warrants to the 30th day after the date on which notice of the accelerated expiry date is given to the holders of the Warrants by Waymar.

In connection with the Offering, HudBay Minerals Inc. has indicated its intent to subscribe for an aggregate of 2,000,000 Units. "HudBay's subscription for approximately 5% of Waymar's outstanding shares demonstrates their support of management's strategy to pursue VMS and other base metal opportunities in Colombia. We very much appreciate their support and welcome them along with several new investors and existing shareholders who will participate in this financing", said Pablo Marcet, President and CEO.

The net proceeds from the Offering will be used to explore Waymar's properties and for general corporate purposes.

In connection with the Offering, Waymar has agreed to pay an aggregate cash commission to the Agents in an amount equal to 7.0% of the gross proceeds of the Offering, and issue broker warrants to the Agents entitling the Agents to acquire, in the aggregate, such number of common shares as is equal to 7.0% of the aggregate number of Units sold in the Offering, at a price of C$1.10 per common share for a period of 24 months following the closing of the Offering. 

The Offering remains subject to the receipt of all required regulatory approvals, including, without limitation, the approval of the TSX Venture Exchange.

Waymar Resources Ltd. is a Canadian mineral exploration company with an option to acquire 100% interest in the Anzá project located in the west of the Antioquia Department in the Republic of Colombia. Upon exercise of the option, the optionors will retain a 2% net smelter return royalty on that portion of the Anzá property governed by the Option Agreement, one-half of which may be purchased by Waymar for a cash payment of US$1,000,000. Colombia is a significant producer of gold, nickel, emeralds, petroleum and natural gas as well as a leading producer of coal in Latin America. Waymar also has 100% ownership of certain properties surrounding Anzá to cover district potential and is continually seeking opportunities to acquire exploration properties. Waymar trades on the TSX Venture Exchange under the symbol "WYM". 

WAYMAR RESOURCES LTD.

Pablo Marcet, President & CEO

This press release contains "forward looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "estimates", "intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the reasonable assumptions, estimates, intentions, analysis and opinions of Waymar made at the date that such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Waymar to be materially different from those expressed or implied by such forward-looking information, including the risk factors disclosed elsewhere in Waymar's public disclosure. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding Waymar's plans and objectives and may not be appropriate for other purposes. Waymar does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Shares Outstanding: 33,788,920

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