War Eagle Closes First Tranche of Non-Brokered Private Placement and Acquires Interest in Chihuahua Property
Vancouver, British Columbia – June 30, 2010 - War Eagle Mining Company Inc. (TSXV - WAR) (“War Eagle” or the “Company”) has closed the first tranche of a non-brokered private placement announced on June 17, 2010. The Company issued 9,576,668 units at a price of $0.06 per unit for gross proceeds of $574,600. Insiders of the Company accounted for $554,000 of the first tranche gross proceeds.
The Company is closing the private placement in two tranches to facilitate an investment in a private company that has a scheduled closing date of June 30, 2010. War Eagle used the net proceeds of the first tranche of the private placement plus $130,000 of its cash on hand to acquire a minority interest in a private company that holds an option to acquire a Chihuahua, Mexico-based mineral property. The Company believes the property is complementary to War Eagle’s Tres Marias project. The Company plans to invest up to a further $300,000 in the private company. The second tranche of the private placement is expected to close no later than July 15, 2010.
Each unit of the private placement consists of one common share of War Eagle and one-half of one common share purchase warrant exercisable at $0.15 for a period of 18 months, subject to acceleration of the exercise period in certain circumstances. If the closing price of the Company’s common shares is $0.30 or more for 20 consecutive trading days on the TSX Venture Exchange, or an equivalent stock exchange, (the "Accelerating Event") the exercise period of the warrants may be reduced to expire on the date that is 30 days following the Company’s notice to the warrantholders of the Accelerating Event.
The Company paid a finder’s fee in connection with this tranche of the private placement of $1,648 in cash and issued 27,466 finder’s warrants which have the same terms as the financing warrants, except they are non-transferable. All securities issued pursuant to this first closing are subject to a four month and one day hold period.
About War Eagle
War Eagle Mining Company Inc. is an experienced mineral exploration company publicly traded since 1987 and listed on the TSX Venture Exchange under the symbol WAR. The Company is in the exploration phase of the Tres Marias zinc-lead project in Mexico. Tres Marias is a former producing high-grade zinc and germanium mine that first produced ore in 1949.
For additional information please contact:
War Eagle Mining Company Inc.
Simon Anderson, President 604-681-7010
Email: [email protected] Website: www.wareaglemining.com
This news release was prepared by management of War Eagle, which takes full responsibility for its contents. 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 release.
Legal Notice Regarding Forward Looking Statements
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with mining operations, therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include references to a future drill program and related plans. These statements are based on assumptions made by the company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.