Western Copper Announces Flow-Through Financing


Western Copper Corporation is pleased to announce that it has appointed Casimir Capital L.P. to act as its agent in connection with a private placement for up to 4,000,000 units of the Company at C$1.00 per unit for gross proceeds of up to C$4,000,000. Kingsdale Capital Markets Inc. will also be participating in the Offering as part of the selling group.

Each unit consists of one flow-through common share of the Company and one-half of one common share purchase warrant. Each whole warrant will be exercisable for one non flow-through common share of the Company at a price of C$1.25 per common share and will expire three years following closing. If, commencing on the date that is four months plus one day following the closing of the Offering, the weighted average trading price of the Company’s common shares on the TSX is at a price equal to or greater than C$2.00 for twenty consecutive trading days, the Company will have the right to accelerate the expiry date of warrants by giving thirty days written notice to the holder.

The Agent will receive a cash commission and warrants (“Agent’s Warrants”), both equal to 6% of the gross proceeds raised by the Agent. Each Agent’s Warrant will be exercisable for one non flow-through common share of the Company at a price of C$1.25 per common share and will expire two years following closing. If the weighted average trading price of the Company’s common shares on the TSX is at a price equal to or greater than C$1.75 for fifteen consecutive trading days, the Company will have the right to accelerate the expiry date of the Agent’s Warrants by giving thirty days written notice to the Agent.

The gross proceeds will be used to incur qualifying Canadian Exploration Expenses, primarily at the Company’s world class Casino project, located in the Yukon. The Casino project has NI 43-101 compliant reserve of 8 million oz of gold, 4.4 billion lb of copper, and 475 million lb of molybdenum, contained in approximately 1 billion tonnes of ore. A positive pre-feasibility study was completed in June 2008, projecting a 30 year mine life with a 20.4% pre-tax IRR, C$1.8 billion NPV (8%) and a 3.8 year payback period.

The Offering is expected to close on or before July 10, 2009 and it is subject to certain conditions including, but not limited to, the receipt of all the necessary regulatory approvals including the approval of the TSX.

In accordance with securities legislation currently in effect, the flow through shares, warrants, any common shares issued on exercise of the warrants, and Agent’s Warrants will be subject to a hold period of four month plus one day extending from the closing date of the transaction.

This news release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities described herein have not been and may never be registered under the United States Securities Act of 1993, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable securities law or unless an exemption from registration is available.

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