VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2012) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") proposes to raise gross proceeds of $194,250 by way of a non-brokered private placement offering of the Company's common shares. Mr. Danny Wettreich will be the sole subscriber of the private placement.
Mr. Wettreich will subscribe for 1,400,000 common shares of the Company at a price of $0.13875 for proceeds of $194,250. The subscription proceeds will be placed in escrow pending TSX Venture Exchange confirmation that it consents to the appointment of Mr. Wettreich as a director of the Company. Upon release of funds from escrow, Mr. Wettreich will be appointed to the board of directors of the Company. If the TSX Venture Exchange, for any reason, does not agree to the arrangement between the Company and Mr. Wettreich, the Company will cancel the share subscription, return the escrowed funds and will not appoint him to the board. Following final closing of the private placement, Mr. Wettreich will own 15.8% of the outstanding shares of War Eagle.
Danny Wettreich has more than 38 years of experience in venture capital, private equity, and management of publicly traded companies. He has been Chairman and CEO of Churchill Venture Capital LP a Dallas, Texas private equity business for more than 20 years, and is Managing Partner of Churchill Natural Resource Partners, LP, which invests in small cap mining companies. He has been a director of public companies listed on NASDAQ, the American Stock Exchange, the London Stock Exchange, the AIM Market of the London Stock Exchange and the Vancouver Stock Exchange, a predecessor to the TSX Venture Exchange. These public companies have been in diverse businesses in internet technologies, oil and gas, retailing, telecommunications, media and real estate. He has facilitated 12 reverse takeover transactions. He is a graduate of the University of Westminster with a BA in Business.
Completion of the private placement and Mr. Wettreich's appointment are subject to certain conditions including, but not limited to, receipt of all necessary corporate and regulatory approvals, including acceptance of the TSX Venture Exchange. The net proceeds of the private placement will be used for working capital and general corporate purposes. All common shares issued in connection with the private placement will be subject to a four-month 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.
This news release was prepared by management of War Eagle, which takes full responsibility for its contents.
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.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.