| ||October 29, 2010|
North American Tungsten Closes Previously Announced Non-Brokered Private Placement Of US$2,870,000 Convertible Debentures
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 that it has closed of an aggregate of US$2,870,000 principal amount of convertible debentures (the "Convertible Debentures"). The Convertible Debentures mature on October 29, 2013 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 2,267 common shares per US$1,000 principal amount of Convertible Debentures. The Convertible Debentures are secured by a general security agreement that will be subordinated to the Company's senior indebtedness.
The proceeds of the private placement will be used for continuing development of the CanTung Mine and general corporate purposes.
The Convertible Debentures issuable under this placement and the common shares issuable upon conversion 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 March 1, 2011.
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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