West Timmins Mining Inc.

West Timmins Mining Inc.

May 21, 2009 08:09 ET

West Timmins Mining Inc.: New Issue

TORONTO, ONTARIO--(Marketwire - May 21, 2009) -


West Timmins Mining Inc. ("West Timmins" or the "Company") (TSX:WTM) has today entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. and including Canaccord Capital Corporation, Haywood Securities Inc., and Wellington West Capital Markets Inc., under which the underwriters have agreed to buy, via private placement, $9,000,000 of securities of the Company, comprised of units at an issue price of $0.75 per unit and/or flow-through shares at an issue price of $0.86 per flow-through share (the "Offering"), subject to a maximum of $5,400,000 of gross proceeds from the issue of flow-through shares.

Units will be comprised of one common share and one half of one common share purchase warrant, with each whole warrant exercisable to acquire an additional common share at an exercise price of $0.95 for a period of 18 months from Closing.

The net proceeds from the Offering will be used for exploration and development of the Company's Timmins area gold properties, working capital, and general corporate purposes. The funds raised from the issuance of the flow-through shares shall be used for general exploration expenditures which will constitute Canadian Exploration Expenditures ("CEE") as defined in the Income Tax Act. Closing of the Offering is expected to occur on or about June 4, 2009.

The underwriters will have an over-allotment option, exercisable at any time up to the closing date, to acquire up to an additional number of units and/or flow-through shares equal to 15% of the number of units and flow-through shares sold pursuant to the Offering, at the issue price.

The common shares and warrants comprising the units, the common shares issuable upon exercise of the warrants, and the flow-through shares will be subject to a four-month hold period under applicable Canadian securities laws.

The Offering is being made in the Provinces of British Columbia, Alberta, Ontario, and Quebec, and is subject to the approval of regulatory authorities. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact Information

  • West Timmins Mining Inc.
    Mr. John Toporowski
    Manager, Investor Relations
    (604) 685-8311