Wesdome Gold Mines Announces Private Placement of Flow-Through Shares for Gross Proceeds of C$3 Million

TSX:WDO

TORONTO, Dec. 9, 2015 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) ("Wesdome" or the "Company") is pleased to announce that its board of directors has approved a non-brokered private placement offering to accredited investors in Canada of 1,818,182 flow-through common shares of Wesdome (the "Flow-Through Shares") at a price of $1.65 per Flow-Through Share for gross proceeds of $3,000,000 (the "Offering"). The Flow-Through Shares will be subject to a four-month hold period in accordance with applicable Canadian securities laws.

Subject to Toronto Stock Exchange ("TSX") approval, Wesdome will pay M Partners Inc. and Dundee Securities Ltd. (collectively, the "Finders") a 3.5% cash fee in connection with subscriptions received from persons who, but for the referral services of either Finder, would not otherwise be participating in the Offering. The financing represents a 27% premium to the volume-weighted average price of the Company's shares over the last 5 trading days.

The Offering is expected to close (the "Closing") on or about December 18, 2015 and is subject to all necessary corporate and regulatory approvals.  

Wesdome intends to use the majority of the gross proceeds from the Offering to advance its exploration programs at the Eagle River camp near Wawa, Ontario; and to a lesser extent, at its Moss Lake, Ontario and Val d'Or, Quebec properties.

ABOUT WESDOME

Wesdome Gold Mines Ltd. is in its 28^th year of continuous gold mining operations in Canada.  The Company is currently producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi gold mines. Wesdome's goal is to expand current operations at both mines over the next four years through mill expansion and exploration. Wesdome has significant upside through ownership of its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold deposit located 100 kilometres west of Thunder Bay, Ontario.  These assets are being explored and evaluated to be developed in the appropriate gold price environment. The Company has approximately 116 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol "WDO".

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, as well as the completion of the proposed Offering and the use of proceeds from the Offering. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company has included in this news release certain non-IFRS performance measures, including, but not limited to, mine operating profit, mining and processing costs and cash costs. Cash costs per ounce reflect actual mine operating costs incurred during the fiscal period divided by the number of ounces produced. These measures are not defined under IFRS and therefore should not be considered in isolation or as an alternative to or more meaningful than, net income (loss) or cash flow from operating activities as determined in accordance with IFRS as an indicator of our financial performance or liquidity. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow

SOURCE Wesdome Gold Mines Ltd.