Western Troy Announces Private Placement by Agnico-Eagle Mines Limited
TORONTO, ONTARIO -- (Marketwire) -- 11/02/10 -- Western Troy Capital Resources (TSX VENTURE: WRY) (Western Troy) reports that Agnico-Eagle Mines Limited (AEM) today entered into a Subscription Agreement with Western Troy to make an investment of C$1 million in Western Troy by way of a non-brokered private placement of units. The transaction is expected to close on November 3, 2010 and is subject to completion of definitive documentation and regulatory approval.
Under the terms of the Subscription Agreement, AEM will purchase a total of 2,000,000 Units at C$0.50 per Unit for proceeds to Western Troy of C$1,000,000. Each Unit consists of one common share and one share purchase warrant of Western Troy. Each whole share purchase warrant entitles the holder to purchase one common share of Western Troy at C$0.60 for a period of 24 months. As a result of the private placement, AEM will own 7.91 percent of Western Troy's issued and outstanding shares and 12.66 percent on a fully diluted basis.
AEM's interest in Western Troy was triggered by the potential of Western Troy's new copper/gold discovery at Deborah Lake near Shefferville in northeastern Quebec (see Western Troy's press release dated September 27, 2010).
Rex Loesby, CEO of Western Troy commented, 'We are honored to have AEM as a major investor in Western Troy. It is a tangible demonstration of the potential of our Deborah Lake copper/gold prospect as well as our exploration prospects.'
Upon completion of this investment, Western Troy's cash position will be approximately $1.8 million. These funds will be used for exploration work at Deborah Lake, feasibility and environmental studies for MacLeod Lake, exploration activities on Western Troy's other prospects, and general corporate purposes.
About Western Troy: Western Troy's shares trade on the TSX Venture Exchange under the symbol WRY, with 25,284,970 shares outstanding. More information on Western Troy can be found on its Website at www.westerntroy.com.
Contacts:
Western Troy Capital Resources
Rex E. Loesby
CEO
416-929-3268
RexLoesby@aol.com
www.westerntroy.com