Weda Bay Minerals Inc.
TSX : WDA

Weda Bay Minerals Inc.

September 07, 2005 09:00 ET

Weda Bay Minerals Announces $12 Million Brokered Private Placement

TORONTO, ONTARIO--(CCNMatthews - Sept. 7, 2005) -

Debt to OMG to be Retired

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES

Patrick Evans, President and CEO of Weda Bay Minerals Inc. (TSX:WDA) (the "Company") today announced the arrangement of a brokered private placement through Regent Mercantile Bancorp Inc. for the sale of 16,000,000 Units at C$0.75 per Unit for gross proceeds of C$12 million.

Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant shall be exercisable to acquire one common share at an exercise price of C$1.25 for a period of 24 months from the closing date, which is expected to be prior to September 15, 2005.

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

Weda Bay Chairman, Michael Garvey, said "It is extremely gratifying that these investors have recognized the value of our extraordinary asset, which has been independently assessed at a net present value of more than US$300 million. Through the retirement of the OMG debt Weda Bay will have met the final condition for the elimination of the Product Supply Agreement. This opens the way for the Company to explore strategic relationships with industry majors."

Weda Bay Minerals Inc. (WDA) 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.

Regent Mercantile Bancorp Inc. is a Toronto / London-based Merchant Bank and Limited Market Dealer focused on financing Energy and Mining companies. Regent works with emerging and mid-cap companies, using its own capital and the investment capital provided by its extensive institutional client base.

WEDA BAY MINERALS INC.

R. MICHAEL GARVEY

CHAIRMAN OF THE BOARD OF DIRECTORS

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