VANCOUVER, Oct. 26 /CNW/ - Novawest Resources Inc. (TSXV - "NVE"; Frankfurt - "NWN"), announces that the Company has arranged a $300,000 Cdn non-brokered Private Placement through the issuance of 1,500,000 units at a price of $0.20 per unit. Each unit consists of one common share and one half-share purchase warrant entitling the holder to purchase one additional non flow-through common share of the Company for each two half-share warrants exercised at$0.25 per share for a period of 24 months. Of the 1,500,000 common shares issued, 1,350,000 will be flow-through and 150,000 will be non flow-through. Finders' fees may be paid on this transaction, subject to the policies of the TSX Venture Exchange. Of the proceeds raised,$270,000 will be spent on the Company's Canadian exploration projects while the remaining $30,000 will be applied to the Company's working capital. All shares issued will be subject to a 4 month hold period per the policies of the TSX Venture Exchange. This private placement is subject to the approval of the TSX Venture Exchange.
In other business, the Company is also pleased to note the expiry of the four month hold period which was attached to the 5 million common shares of Goldbrook Ventures which Novawest received inJune 2007 as part of the sale price for its Raglan Interests. The 5 million Goldbrook shares are now free-trading. Based on the $0.44 Cdn closing price of Goldbrook's shares, at market close October 25th, the shares are valued at $2.2 million. Novawest also holds 2 million Goldbrook warrants, which also have no hold period attached, that are exercisable at $0.35 Cdn reflecting a combined paper gain of approximately $2,380,000 to date.
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
