Weda Bay Minerals announces completion of $17.6 m private placement

Canadian nickel explorer Weda Bay Minerals Inc. announced on Tuesday the closing of a previously announced private placement for the sale of 17.6 million Units of the Company at C$1.00 per Unit for gross proceeds of C$17.6 million. Each Unit consists of one common share of the Company and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at a price of C$1.50 for 24 months.

Millennium Partners, L.P, previously a 19.9 per cent shareholder in the Company, subscribed for 8.8 million Units. Following this private placement Millennium now controls 27.37 per cent of the Company. Institutional accounts managed by Capital Guardian Trust Company also subscribed for 8.8 million Units and collectively now controls 12.4 per cent of Weda Bay Minerals Inc.

The funds raised from the placement will go towards the Definitive Feasibility Study of the Company's Halmahera island Nickel Cobalt Project. Halmahera is one of the world's largest undeveloped nickel mining sites.

Weda Bay President and CEO, Patrick Evans said that the placement would put the company in a position to fund the Definitive Feasibility Study scheduled for commissioning early next year.

Weda Bay Minerals Inc. (WDA) is an exploration and development company that controls the Halmahera Nickel Cobalt Project at Weda Bay, Halmahera in Eastern Indonesia. The project resources are: 16 million tonnes grading 1.27% Ni and 0.18% Co of measured resources; 139 million tonnes grading 1.47% Ni and 0.08% Co of indicated resources; and 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 is currently being updated. (alex)