| ||May 21, 2010|
North American Tungsten Corporation LTD. Closes Convertible Debenture Offering
| ||NORTH AMERICAN TUNGSTEN CORPORATION LTD. (the "Company") is pleased to announce it has closed the convertible debenture offering previously announced on May 19, 2010. The Company issued a total of CDN$3,150,000 in convertible debentures (the "Convertible Debentures").|
The Convertible Debentures mature on the date that is 26 months after the date of issuance and bear interest at 12.5% per annum, payable upon the earliest to occur of maturity, conversion in full into common shares of the Company or redemption in full by the Company.
The principal amount of the Convertible Debentures is convertible into common shares of the Company, at any time from the date of issuance until the maturity date, at a price equal to the greater of CDN$0.18 per common share and the volume weighted average trading price of the common shares of the Company on the TSX Venture Exchange ("VWAP") for the ten trading days immediately preceding the date the Convertible Debentures are surrendered for conversion.
The principal amount of the Convertible Debentures is also redeemable by the Company at any time after 60 days from the date of issuance until the maturity date, provided that the Redemption Price (as defined below) on the date on which the Convertible Debentures are redeemed is not greater than CDN$0.25 per common share. Upon redemption, the Company will issue to the holder of the Convertible Debentures common shares of the Company at a price equal to the greater of CDN$0.18 per common share and the VWAP for the ten trading days immediately preceding the date the Convertible Debentures are redeemed (the "Redemption Price").
The proceeds of the private placement will be used for development of the CanTung Mine and general corporate purposes.
The Convertible Debentures issuable under this placement and the common shares issuable upon conversion or redemption of the Convertible Debentures are subject to a four month hold period pursuant to applicable Canadian securities laws and the rules of the TSX Venture Exchange and cannot be traded before September 22, 2010.
ON BEHALF OF THE BOARD OF DIRECTORS
"Stephen M. Leahy"
Stephen M. Leahy
Chairman & CEO
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.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
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