Weda Bay announces $12 million placement

Canadian junior miner Weda Bay Minerals Inc.announced on Wednesday the arrangement of a brokered private placement through Regent Mercantile Bancorp Inc. for the sale of 16,000,000 Units at C$0.75 per Unit for gross proceeds of C$12 million.

The proceeds from the placement will be used to retire the US$ 2.5 million debt to OM Group Inc; to continue work at the Halmahera Nickel Cobalt Project preparatory to the commencement of the Definitive Feasibility Study, and for general corporate purposes. The Placement is subject to regulatory acceptance.

Weda Bay Chairman, Michael Garvey, said "It is extremely gratifying that these investors have recognized the value of our extraordinary asset, which has been independently assessed at a net present value of more than US$300 million. Through the retirement of the OMG debt Weda Bay will have met the final condition for the elimination of the Product Supply Agreement. This opens the way for the Company to explore strategic relationships with industry majors."

Weda Bay is an exploration and development company that controls the Halmahera Nickel Cobalt Project which is globally one of the largest undeveloped nickel projects. The project resources are 155 million tonnes grading 1.45% Ni and 0.09% Co of measured and indicated resources plus 123 million tonnes grading 1.53% Ni and 0.08% Co of inferred resource. Resource estimates are at a cutoff grade of 1.0% Ni. The Company has completed an independent Pre Feasibility Study which concludes that the Halmahera project is viable.(alex)