TORONTO, ONTARIO, Nov. 9, 2010 (Marketwire) -- Western Troy Capital Resources (TSX VENTURE:WRY) (Western Troy) is pleased to report that Agnico-Eagle Mines Limited (AEM) and Western Troy have closed the private placement announced on November 2, 2010. Under the terms of the private placement, AEM has made an investment of C$1 million in Western Troy by way of a non-brokered private placement of units. The transaction was approved by the TSX Venture Exchange on November 8, 2010.
Under the terms of the private placement, AEM purchased 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 common 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 14.66 percent on a fully diluted basis. All of the securities are subject to restrictions on trading until March 9, 2011.
Hard Money Private Placement: Western Troy also announces a non-brokered private placement with Pinetree Capital Ltd. and others to raise up to $500,000 by the issuance of up to 1,000,000 Units ("Units") at a price of $0.50 per unit. Each Unit consists of one common share and one non-transferable share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase a common share of Western Troy at a purchase price of $0.60 for a period of two years from the date of closing of the private placement. The transaction is expected to close in mid-November and is subject to completion of definitive documentation and regulatory approval. All of the securities issued in the proposed private placement will be subject to a hold period of four months and one day.
Upon completion of this investment along with the closing of the AEM transaction and the closing of the Private Placement announced on November 5, 2010, Western Troy's cash position will be approximately $4.3 million. These funds will be used for 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 currently outstanding. More information on Western Troy can be found on its Website at www.westerntroy.com.
Neither 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.
Western Troy Capital Resources