Weda Bay closes $6 million private placement financing

Canadian mining company Weda Bay Minerals Inc. reported on Monday it had closed the previously announced private placement of Units for gross proceeds of CDN$6 million.

Under agreements with First Associates Investment Inc. and Regent Mercantile Bancorp Inc. a total of 5,000,000 Units have been issued at a price of $1.20 per Unit.

Each Unit consists of one common share and one half of one common share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share for a period of eighteen months at $1.50 per share.

Te Company said the net proceeds of this private placement will be used to continue metallurgical studies and property exploration at the Company's nickel and cobalt property on Halmahera Island in Indonesia and for general corporate purposes.

Upon completion of this transaction Weda Bay will have approximately 35 million common shares issued and outstanding. (alex)