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VANCOUVER, June 20 /CNW/ - Novawest Resources Inc. (TSXV - "NVE"; Frankfurt - "NWN"), is pleased to announce that it has completed the sale of a 100% interest in its Raglan Assets to Goldbrook Ventures Inc. (TSXV - "GBK"). For its Raglan Interests Novawest received from Goldbrook$4 million in cash, 5 million common shares of Goldbrook, 2 million warrants to purchase an additional 2 million common shares of Goldbrook at$0.35 per share at any time within 5 years, a 1% Net Smelter Royalty on future production proceeds should any occur on any of the Raglan Interests that do not have a pre-existing Royalty obligation, and a guarantee of a minimum$2 million exploration program on the Interests to be carried out in summer 2007.
By way of Novawest's new share position in Goldbrook and its now enlarged Raglan holdings, Novawest's stakeholders continue to be serious participants in the future of the Raglan Ni-Cu-PGE Camp.
Due largely to the early exploration carried out by Novawest at Raglan and the attention it brought the Raglan Camp, the Raglan Camp today is one of the most actively explored Ni-Cu-PGE camps in the world. The Novawest Board and management team would like to acknowledge and thank all of the explorationists that have worked with Novawest over the years in developing this Ni-Cu-PGE project into what it is today. Novawest would also like to congratulateMr. David Baker and his Goldbrook team for continuing to believe whole-heartedly in the potential of the Raglan Camp and Novawest will continue to support and applaud their determination and continued efforts at Raglan as they move the project forward.
Novawest will be focusing on the exploration and development of its Chibougamau Copper-Gold and Uranium Projects with an aggressive approach in the works. Novawest is currently carrying out an extensive staking and acquisition agenda at Chibougamau and will be advising its shareholders on these matters in the coming weeks. In the last week alone the company has added at least 115 sq km of key additional claims to its existing Chibougamau holdings. Management is very encouraged by all the recent activity in the Chibougamau camp and is quite confident it has chosen a very good exploration area on which to build Novawest's next thrust.
ON BEHALF OF THE BOARD OF DIRECTORS OF NOVAWEST RESOURCES INC.
"Patrick D. O'Brien"
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Patrick D. O'Brien - Chairman
Novawest invites the public to visit its website at http://www.novawest.com or e-mail the company at novawest@novawest.com to be added to the company's e-mail list for press releases and updates.
S.E.C.Exemption12(g)3-2(b) File No. 82-3822, Standard & Poors Listed, Dun
& Bradstreet Listed
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS NEWS
RELEASE SHALL NOT CONSTITUITE AN OFFER TO SELL OR THE SOLICITATION OF AN
OFFER TO BUY SECURITIES IN ANY JURISDICTION. "SAFE HARBOR" STATEMENT
UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: THIS NEWS
RELEASE CONTAINS FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS
AND ARE SUBJECT TO RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THOSE SET FORTH IN OR IMPLIED HEREIN.
For further information: Novawest Resources Inc., Suite 1000, The Marine Building, 355 Burrard Street, Vancouver, BC, V6C 2G8, Phone: (604) 683-8990 or Toll Free: 1-800-663-8990, Fax: (604) 683-8903
