|January 28, 2010|
Western Pacific Resources Corp. Completes Initial Public Offering
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES.
Vancouver, British Columbia, January 28, 2010 -- Western Pacific Resources Corp. (the "Company" or "Western Pacific") is pleased to announce the completion of its initial public offering (the "Offering") of 6,000,000 units (the "Units") of the Company at a price of $0.35 per Unit for gross proceeds of $2,100,000. Each Unit consists of one common share (a "Share") of the Company and one-half of a transferable common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder thereof to acquire one Share at a price of $0.50 for a period of eighteen months following the closing of the Offering (the "Closing"). The Units were issued pursuant to the final prospectus of the Company dated December 29, 2009 (the "Prospectus").
The TSX Venture Exchange (the "TSXV") has approved the Company's listing application and the Company's Shares will commence trading on the TSXV under the ticker symbol "WRP" on February 1, 2010.
The Offering was made through Canaccord Financial Ltd. (the "Agent") and the members of the Agent's selling group (collectively, the "Agents"). As consideration, the Company: (1) paid a cash commission of $178,500 equal to 8.5% of the gross proceeds of the Offering; (2) paid an administrative fee; (3) paid a corporate finance fee of cash and 75,000 Shares; and (4) issued non-transferable common share purchase warrants to the Agents entitling the Agents to purchase 510,000 Shares (being 8.5% of the number of Units sold under the Offering) at a price of $0.50 per Share for a period of eighteen months following the Closing.
The Company presently has 14,902,501 Shares issued and outstanding, of which 2,420,001 are subject to escrow restrictions.
Subject to regulatory approval, the Company will also grant stock options to officers, directors and consultants of the Company to purchase 1,035,000 Shares at a price of $0.35 per Share, exercisable for up to ten years.
The Company intends to use the proceeds of the Offering primarily for the exploration and advancement of its South Lida Property located in the Lida Mining Distict in south-central Esmeralda County, Nevada. Full disclosure on the Offering, the use of proceeds and the South Lida Property can be found in the Prospectus, which has been filed on www.sedar.com.
About Western Pacific
Western Pacific is a gold explorer focused on acquiring advanced-stage projects in the Western United States. A member of the Gold Group, including Fortuna Silver Mines Inc., Radius Gold Inc., and Focus Ventures Ltd., Western Pacific has the right combination of exploration and financial professionals to succeed in making a world class gold discovery. For more information, please visit our website at www.westernpacificresources.com.
ON BEHALF OF THE BOARD
Warwick Smith, Chief Executive Officer
Tel: (604) 801-5432
Fax: (604) 662-8829
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological data, risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits, project cost overruns or unanticipated costs and expenses -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, 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 news release.
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