Weda Bay Minerals Inc.
TSX : WDA

Weda Bay Minerals Inc.

September 12, 2005 10:33 ET

Weda Bay Closes $12 Million Brokered Private Placement

TORONTO, ONTARIO--(CCNMatthews - Sept. 12, 2005) -

OMG Debt to be retired

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES

Weda Bay Minerals Inc. (TSX:WDA) (the "Company") today announced that the Company has closed the previously announced brokered private placement arranged through Regent Mercantile Bancorp Inc.

Through the private placement, 16,000,000 Units have been sold at C$0.75 per Unit for gross proceeds of C$12 million. Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant may be exercised to acquire one common share at an exercise price of C$1.25 for a period of 24 months from the closing date, which was Friday, September 9, 2005.

The proceeds from the placement will be used to retire the US$ 2.5 million debt to OM Group Inc. (OMG); to continue work at the Halmahera Nickel Project preparatory to the commencement of the Definitive Feasibility Study, and for general corporate purposes.

Commenting on the placement, Weda Bay President and CEO, Patrick Evans, said: "The placement of these Units at an approximate 50 percent premium to the market price is a signal of enormous confidence in our Company and the Halmahera Project. Through the retirement of the OMG debt, Weda Bay will be in a position to explore strategic relationships with industry majors and to move aggressively towards the commencement of a definitive feasibility study."

The securities placed have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Weda Bay Minerals Inc. is an exploration and development company that controls the Halmahera Nickel Cobalt Project which is globally one of the largest undeveloped nickel projects. The project resources are 155 million tonnes grading 1.45% Ni and 0.09% Co of measured and indicated resources plus 123 million tonnes grading 1.53% Ni and 0.08% Co of inferred resource. Resource estimates are at a cutoff grade of 1.0% Ni. The Company has completed an independent Pre Feasibility Study which concludes that the Halmahera project is highly viable.

Shares Issued and Outstanding: 52,937,535

Contact Information

  • Weda Bay Minerals Inc.
    Mr. Patrick Evans
    President and CEO
    (416) 603-0591
    (416) 367-3638 (FAX)
    or
    Weda Bay Minerals Inc.
    Mr. Ian Shaw
    Investor Relations
    (416) 603-0591
    (416) 367-3638 (FAX)
    info@wedabay.com
    www.wedabay.com