CALGARY, ALBERTA--(Marketwire - Oct. 18, 2012) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Mr. Charlie Chapman, President of Primewest Exploration Inc. (TSX VENTURE:PWI.H) (the "Corporation" or "Primewest"), announces the Corporation will not be proceeding with its previously announced qualifying transaction as originally disclosed via Stockwatch on March 21, 2012. The Corporation will continue identifying and evaluating other potential transactions.
With the transfer to the NEX board now complete, the Corporation will continue pursuing strategies to maximize shareholder value. The transfer to NEX will not result in a change of the Corporation's name or a change in its CUSIP number. The Corporation will be subject to restrictions on share issuances and certain types of payments as set out in the NEX policies. The Filing and Service Office will change from Calgary to NEX.
NEX is a separate board of the TSXV designed to provide a trading forum for publically listed companies while they assess their business plans, operations, and formulate a strategy to reactivate their businesses for future growth.
The Corporation continues to explore acquisitions and business opportunities and the transfer of its listing to the NEX will not materially impact its strategy. The Corporation wishes to thank its shareholders for their continued support and patience throughout this process. The Corporation's financial reporting is currently up to date, and it is a reporting issuer in good standing.
A further announcement regarding the current trading suspension will be issued shortly.
The Corporation announces a non-brokered private placement of 8,000,000 common shares at $0.05 per common share for gross proceeds of $400,000. A finder's fee of 7% will be payable in cash and any finders shall also be entitled to an option to acquire such number of common shares equal to 7% of the number of common shares sold under the offering, at an exercise price equal to $0.05 per common share, exercisable for a period of 24 months from the closing date. The funds raised under the private placement are to be used to settle outstanding trade payables and pursue a suitable "Qualifying Transaction".
This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Corporation's control that may cause actual results or performance to differ materially from those currently anticipated in such statements. Such forward-looking statements include comments regarding the private placement and use of funds.
Neither the TSX Venture Exchange, Inc. nor its Regulation Service Provider (as that term is defined under the policies of the TSX Venture Exchange) has neither approved nor disapproved of the contents of this press release.