VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2012) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") provides an update on its corporate activities and business development strategy.
As previously disclosed, the Company planned to raise gross proceeds of $194,250 by way of a non-brokered private placement offering of the Company's common shares in which Mr. Danny Wettreich would be the sole subscriber subject to his appointment as a director and the approval of the TSX Venture Exchange. The TSX Venture Exchange has conditionally approved the appointment of Mr. Wettreich, however the Company's board of directors has not yet been able to comply with all regulatory requirements. Accordingly, Mr. Wettreich has not yet been appointed to War Eagle's board of directors. The board is currently reviewing alternative options for Mr. Wettreich and his potential involvement with the Company.
Andromeda Resources Inc.
The Company has also been in discussion with Andromeda Resources Inc. ("Andromeda") to resume the previously announced reverse takeover transaction, which shareholders approved at the Company's December 2011 annual general and special meeting. Andromeda had negotiated an amendment to the purchase agreement to acquire the Terrazas zinc-copper property and was granted an extension to May 31, 2012 subject to certain conditions. However, the current state of equity markets prevented Andromeda from raising sufficient funds to make the required payment and satisfy the financing condition of the transaction agreed to with the Company.
War Eagle is actively reviewing potential projects for its two key assets: the Tres Marias zinc-lead project located in Mexico and the MAC tantalum-tin-lithium property located in the Northwest Territories. It continues to seek complementary zinc-lead resources that it can operate in conjunction with Tres Marias with a view to spreading costs over a broader base of activity and, ideally, sharing processing facilities. The Company also believes that the MAC property has potential, based on review of drill results and modelling work performed over time, but a relationship with a processor or consumer will be required to justify development. The Company has not yet reached a final decision regarding development plans for either of these properties. As previously disclosed, the Company has optioned its George's Lake gold property to a third party.
The Company has sufficient cash to fund its immediate needs but will need to raise funds in the near future to continue its business initiatives.
Mr. Don Padgett resigned from the board of directors of the Company effective June 12, 2012. War Eagle thanks Mr. Padgett for his contribution to the Company as a director and wishes him success in future endeavours. As a result of Mr. Padgett's resignation, a casual vacancy on the board of directors has been created and the board of directors now consists of three directors.
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.