VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 23, 2012) - West Melville Metals Inc. (TSX VENTURE:WMM) ("West Melville") today announced the completion of its initial public offering (the "Offering") of 8,000,000 common shares at a price of $0.50 per Common Share, and 2,822,727 flow-through common shares priced at $0.55 per Flow-Through Share for total gross proceeds of $5,552,500. The Company commenced trading on the TSX Venture Exchange at market open on July 23, 2012, under the ticker symbol "WMM".
"We are pleased to announce the closing of our IPO and commencement of trading for the company," stated John Robins, Chairman of West Melville. "This milestone represents the culmination of the dedicated efforts of our management team and support staff. On behalf of the Company I would like to thank our shareholders, directors and officers, as well as the Aurora Resource Group, who all played a key role in bringing this exciting venture to investors. We look forward to rapidly advancing our projects and creating value for shareholders."
The net proceeds from the sale of the Common Shares will be used to advance the Company's exploration programs as well as for general corporate purposes. The gross proceeds from the sale of the Flow-Through Shares will be used for Canadian Exploration Expenses (CEE) related to the Issuer's Fraser Bay exploration project in Nunavut. West Melville has agreed to renounce such CEE with an effective date of no later than December 31, 2012. Full disclosure on the Offering and use of proceeds can be found in the prospectus posted on SEDAR (www.sedar.com).
About the Offering
The Offering was sold by Haywood Securities Inc., the lead underwriter, and Byron Capital Markets Ltd. (together the "Agents"). The Company paid the Agents a commission equal to 6% of the gross proceeds of the Offering (the "Agents' Commission"), 50% in cash and 50% in Common Shares of the Company at a price of $0.50 per Common Share (the "Commission Shares") and granted the Agents 649,363 non-transferable Agents' Warrants exercisable at a price of $0.50 per Commission Share for a period of two years from the Closing Date.
The Company has paid the Agents a corporate finance fee as well as the Agents' expenses in connection with the Offering, including legal expenses and the Agents' reasonable out-of-pocket expenses.
About West Melville Metals Inc.
West Melville is an iron ore and specialty metals exploration company working to advance the Fraser Bay iron ore project in Nunavut and the Isortoq iron-titanium-vanadium project in Greenland. The Company has assembled an experienced management team with a track record of discovery success together with a Board of Directors with expertise covering the essential fields of geology, engineering, and finance. West Melville's projects offer a combination of low geological risk with significant upside potential in high demand commodity sectors.
On behalf of the Board of Directors
Rory O. Moore, Ph.D.
President and CEO, West Melville Metals Inc.
For further information about West Melville Metals Inc. or this news release, please visit our website at www.westmelville.com.
West Melville Metals Inc. is a member of the Aurora Resource Group of companies. For more information please visit www.auroraresource.com.
Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to use of proceeds and future exploration programs, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to West Melville's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, West Melville expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.