| ||October 18, 2010|
North American Tungsten Announces a Non-Brokered Private Placement of Up to Us$2,850,000 Convertible Debentures and CDN$2.66 Million of Units
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
NORTH AMERICAN TUNGSTEN CORPORATION LTD. (the "Company") is pleased to announce an offering of an aggregate of up to US$2,850,000 principal amount of convertible debentures (the "Convertible Debentures"). The Convertible Debentures mature on the date that is 36 months after the date of issuance and bear interest at 10.0% per annum, payable quarterly. The principal is convertible into common shares of the Company at CDN$0.45 per common share (US$0.44 based on a pre-determined fixed exchange rate of US$1.00 = CDN$0.98) until maturity, or 2,915 common shares per US$1,000 principal amount of Convertible Debentures. The Convertible Debentures will be secured by a general security agreement that will be subordinated to the Company's senior indebtedness.
The Company further announces a non-brokered private placement of 7,000,000 units at a price of CDN$0.38 per unit for proceeds of CDN$2,660,000. Each unit will consist of one common share and 2/7 of a share purchase warrant. Each whole share purchase warrant will be exercisable at a price of CDN$1.00 into one common share for a period of five years from date of closing.
The proceeds of the private placement will be used for continuing development of the CanTung Mine and general corporate purposes.
The private placement is subject to regulatory approval. It is anticipated that insiders of the Company will subscribe for US$832,500 principal amount of Convertible Debentures.
ABOUT NORTH AMERICAN TUNGSTEN CORPORATION LTD.
The Company is the 100% owner of the CanTung Mine and the MacTung development project in Canada. It is one of the largest producers of tungsten concentrates in the western world. MacTung is one of the world's largest undeveloped high grade tungsten-skarn deposits. Through an affiliate, the Company is also developing downstream product capability.
ON BEHALF OF THE BOARD OF DIRECTORS
Stephen M. Leahy
Chairman & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." Cautionary Note: The Company relies upon litigation protection for "forward-looking" statements.
THIS PRESS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, 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 ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.
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