Pacific North West Capital Closes $2,550,750 Non-brokered Private Placement
VANCOUVER, July 18, 2011 /CNW/ --
TSX: PFN OTCQX: PAWEF Frankfurt: P7J
VANCOUVER, July 18, 2011 /CNW/ - Pacific North West Capital Corp. (TSX: PFN) (OTCQX: PAWEF) (Frankfurt:
P7J) (the 'Company') is pleased to report that, further to its previous news releases
(June 23, 2011, July 5, 2011 and July 18, 2011) it has closed the
second and final tranche of a non-brokered private placement under the
same terms and conditions as set out in the July 5, 2011 news release,
for second tranche gross proceeds of $259,500. The aggregate gross
proceeds from the first and second tranche totals $2,550,750.
In the first tranche, the Company placed 2,583,333 Non-Flow-Through
Units ('NFT Units') at $0.30 cents per unit and placed a further
620,000 NFT Units at $0.30 per unit in the second tranche, for a total
of 3,203,333 Units.
Also in the first tranche, the Company placed 4,332,141 Flow-Through
Units ('FT Units') at $0.35 cents per unit and placed a further 210,000
FT Units at $0.35 in the second tranche, for a total of 4,542,141 FT
Units.
All common shares issued in connection with the units are subject to
regulatory hold periods expiring November 14 (1(st) Tranche) and November 19, 2011 (2(nd) tranche). In connection with the closing of the financing, the Company
has paid cash finder's fees in aggregate of $81,725 consisting of
$68,750 (1(st) tranche) and $12,975 (2(nd) tranche).
The foregoing is subject to final regulatory approval.
The proceeds from the flow-through portion of the private placement will
be used for the further development of the River Valley PGM Project
located in the Sudbury region of Ontario (see news releases dated May
17, 2011, May 31, 2011 and June 15, 2011); the Destiny Gold Project,
located approximately 75 km north of Val d'Or in the
Abitibi-Témiscamingue region, Québec (see news release dated March 7,
2011); and the Rock and Roll project located in the Liard Mining
District approximately 9 km west of the Bronson airstrip and
exploration camp in northern British Columbia (see press release dated
April 27, 2010). The Rock and Roll project hosts precious metals rich,
volcanogenic massive sulphide mineralization in a volcano-sedimentary
host rock package. The mineralization shows similarities to the gold
and silver rich mineralization of Barrick Gold's past-producing Eskay
Creek mine. Proceeds from the non-flow-through portion of the financing
will be used for the above; for the advancement of the Company's Alaska
property, and for the acquisition of additional platinum group metals,
precious metals and base metals projects in Canada, the United States
and Africa.
About Pacific North West Capital Corp.
Pacific North West Capital Corp. (TSX: PFN) (OTCQX: PAWEF) (Frankfurt:
P7J.F) is a mineral exploration company whose corporate philosophy is
to be a project generator, explorer and project operator with the
objective of option / joint venturing its projects through to
production. In January 2011, Pacific North West Capital successfully
negotiated the 100% acquisition of the River Valley PGM Project from
Anglo Platinum Limited, making Anglo Platinum the largest shareholder
of PFN holding approximately 9% of the Company (as of July 18, 2011).
In special situations, like our 100% owned River Valley PGM Project,
the Company is prepared to fund the project through to feasibility and
on to production. The River Valley PGM project is one of North
Americaʹs newest and largest primary platinum group metals (PGM)
deposits. The project has an excellent infrastructure and is located 60
mile from Sudbury, Ontario, one of Canada's largest mining centres with
2 large capacity mineral processing facilities that have extra capacity
On January 24, 2011, PFN announced a new NI43-101 mineral resource
estimate on the Destiny Gold Project which is situated 75 km near
Val-d'Or, Québec (see news release dated January 24, 2011). The Destiny
Project is under option from Alto Ventures Ltd. ('Alto'). Under the
terms of the option agreement, PFN can earn a 60% interest in the
property over a four-year period by completing $3.5 million in
exploration expenditures, paying $200,000 and providing a total of
250,000 PFN shares to Alto. The Company also has PGM, gold and base
metal projects in BC, Québec, Ontario, Saskatchewan and Alaska and
continues to aggressively acquire new acquisition of additional
platinum group metals, precious metals and base metals projects on an
international scale.
On April 20, 2011, PFN announced that it has commenced the Phase I of
the $5 million, 15,500 metre drill program for its 100% owned River
Valley PGM Project and results are expected in May 2011. Work to date
at River Valley suggests that the best potential for economic
accumulations of PGM-Cu-Ni sulphide mineralization is within the
Breccia Zone, which includes the main mineralized breccia zone The Main
Zone occurs within about 20 metres of the intrusive contact with
Archean gneisses. This contact zone extends for over 9 km of
prospective strike length, holds the current defined resource and is
the main target of the Company's renewed exploration efforts.
In addition, PFN is a significant shareholder of Fire River Gold Corp
(FAU:TSX.V) which company is developing the Nixon Fork Gold Mine in
Alaska, with production slated to commence in summer of 2011. (click
here to view Fire River Gold's 2011 President's Message)
Pacific North West Capital Corp. is well funded with an experienced
management team and the ability to take advantage of its growing asset
base in Platinum Group Metals, gold and base metals. To that end, the
Company is in the process of adding key technical and financial people
to our management, advisory team and our board of directors. PFN has
approximately $6.5 million in working capital and securities and no
debt.
Pacific North West Capital Corp. is an International Metals Group
Company.
(www.internationalmetalsgroup.com).
On behalf of the Board of Directors
Harry Barr
President and CEO
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
Disclaimer: This news release may contain certain 'Forward-Looking
Statements' within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included herein are forward-looking
statements that involve various risks and uncertainties. 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. Important factors that could cause
actual results to differ materially from the Company's expectations are
disclosed in the Company's documents filed from time to time with The
Toronto Stock Exchange, British Columbia Securities Commission and the
United States Securities & Exchange Commission.
News Release July 13, 2011
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/18/c6104.html
Tel: 1.604.685.1870 Fax: 1.604.685.8045
Email: info@pfncapital.com, or visit www.pfncapital.com
2303 West 41st Avenue, Vancouver, B.C., Canada, V6M 2A3