NewWest Gold Corporation Announces Exercise of Over-Allotment Option
Lakewood, Colorado (ots/PRNewswire)
- Not for Distribution to United States Wire Services or for Dissemination in The United States
NewWest Gold Corporation (TSX:NWG) ("NewWest") today announced the
exercise of the over-allotment option granted in accordance with
NewWest's recent initial public offering (IPO).The exercise of the over-allotment will result in the issuance of an additional 192,000 common shares of NewWest, at the IPO price of C$2.50 per share, for total gross proceeds of C$480,000. Following the exercise of the over-allotment, the total gross proceeds raised in NewWest's IPO will be approximately C$21.0 million. Total common shares issued will be 8,392,000 with 58,392,000 outstanding.
The NewWest offering was sold through an underwriting syndicate of Canaccord Capital Corporation, GMP Securities L.P. and Wellington West Capital Markets Inc. Canaccord Capital Corporation acted as lead underwriter of the syndicate.
In connection with the closing of NewWest's IPO on August 29, 2006, NewWest granted the underwriters an over-allotment option to purchase an additional number of shares at the IPO Price equal to 15% of the underwritten shares for a period of 30 days following the closing of the offering.
The closing of the over-allotment option and the admission of the additional shares for trading on the TSX is expected to occur during the week of October 2, 2006.
About NewWest Gold Corporation
NewWest Gold Corporation is one of the largest holders of precious metals mineral rights in Nevada's gold trends, spanning approximately 623,000 acres. NewWest holds nineteen exploration projects, including advanced staged projects with measured and indicated resources. NewWest's goal is to advance its projects along the pipeline into production.
Forward-Looking Statements
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of future operating results, economic performance, potential mineralisation and resources, exploration results and further plans and objectives are forward looking statements that involve various risks and uncertainties which, although considered reasonable by NewWest at the time of preparation, may prove to be incorrect. Readers are cautioned that there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the common shares in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The common shares of NewWest have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.
Contact:
For further information: NewWest Gold Corporation, Stephen D. Alfers,
President and Chief Executive Officer, Tel: +1-303-425-7042, Fax:
+1-303-425-6634, info@newwestgold.com; BarnesMcInerney Inc., Daniel
Weinerman, Tel: +1-416-367-5000 ext. 248, Fax: +1-416-367-5390,
dweinerman@barnesmcinerney.com/