WGF Wescan Goldfields Inc

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE DISTRIBUTION SERVICES/ Stock Symbol: WGF: TSX-V SASKATOON, Dec. 22, 2011 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the "Corporation") is pleased to announce that it has closed the first tranche of its private placement financing consisting of an aggregate of 14,285,714 common shares in the capital of the Corporation ("Common Shares") issued on a flow-through basis pursuant to the Income Tax Act (Canada) (each a "FT Share") at a price of $0.07 per FT Share for aggregate gross proceeds of approximately $1,000,000 (the "Offering"). The Corporation will pay certain finders (each a "Finder") cash fees equal to up to 6% of the gross proceeds raised by such Finder pursuant to the Offering, and will issue such Finder warrants equal to 7% of the number of FT Shares attributable to such Finder pursuant to the Offering (the "Finder's Warrants"). Each Finder's Warrant will entitle the holder to acquire one Common Share on a non flow-through basis at an exercise price of $0.15 for a period of 24 months from the date of issuance. All securities issued pursuant to the Offering and the Finder's Warrants will be subject to a four month hold period in accordance with applicable securities laws and exchange regulations. Proceeds realized from the Offering will be applied to fund further exploration on the Corporation's Jojay Gold Project in northern Saskatchewan located in the La Ronge Gold Belt and potentially a preliminary economic assessment on this property. The funds may also be used to complete a National Instrument 43-101 compliant Technical Report and Resource Estimate on the defined mineralized areas of the Jasper Gold deposit located in the La Ronge Gold Belt, to do preliminary exploration on the Munro Lake gold property in northern Saskatchewan and on trend with Claude Resources Inc.'s Santoy zones, as well as for general corporate purposes. Wescan is a Canadian-based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of Wescan trade on the TSX Venture Exchange under the trading symbol "WGF". Caution Regarding Forward-Looking Statements Certain statements contained in this press release constitute forward-looking statements in respect of the proposed Offering including those relating to the tax treatment of the FT Shares and the use of the net proceeds by Wescan. These forward-looking statements are based on Wescan's current beliefs as well as assumptions made by and information currently available to Wescan. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, developments in world coal and gold markets, changes in exploration plans due to exploration results and changing budget priorities of Wescan, the effects of competition in the markets in which Wescan operates, the impact of changes in the laws and regulations regulating mining exploration and development, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and tax treatment of the FT Shares. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The Common Shares and the FT Shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release. Wescan Goldfields Inc. CONTACT: Darren Anderson, President or Harvey Bay, Chief FinancialOfficer, at(306) 664-2422

Copyright