TORONTO, ONTARIO--(CCNMatthews - March 22, 2006) - Western Troy Capital Resources Inc. (TSX VENTURE:WRY) announced today that it has closed a $1.3 million private placement financing through Dominick & Dominick Securities Inc. of Toronto, Ontario. The private placement consisted of both "flow-through" units and common share units. Each flow-through unit, priced at $0.60 per unit, consisted of one flow-through common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one-common share at a purchase price of $0.80 per share for a period of 18 months from the date of issuance.. A total of 1,626,999 flow-through units were sold for gross proceeds of $976,200. Each common share unit, priced at $0.50 per unit, consisted of one common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a purchase price of $0.80 per share for a period of 18 months from the date of issuance. A total of 650,000 common units were sold for gross proceeds of $325,000. Dominick & Dominick will receive a success fee of eight percent (8%) of the funds raised for the company plus broker warrants equal to equal to 10% of the number of units sold to investors in the private placement. Each broker warrant is exercisable into one common share of the company at a price per share equal to the price of the units sold.
The company also completed a concurrent non-brokered private placement of 100,000 common share units at a price of $0.50 per unit for gross proceeds of $50,000. Each unit consists of the same underlying securities as the common share units issued in the brokered private placement.
All securities issued under the private placements are subject to a hold period of 4 months and one day.
The funds from the private placements are to be used by Western Troy for its previously announced exploration program at its MacLeod Lake molybdenum/copper project in Northern Quebec, and for other general corporate purposes.
Western Troy has commenced geophysical surveys and drilling at its MacLeod Lake Project. Bradley Bros. Ltd. of Quebec mobilized into the project on schedule on March 15, 2006. The program is designed to test existing IP targets ("Blue Dot" and Northeast Zones), to drill step out holes near high grade intercepts in the South Zone, and to expand the resource in the Main Zone. The first drill results will be available in approximately 4 weeks.
Rex Loesby, President of Western Troy, commented, "We are happy we were able to attract substantial interest in the private placement financings. Originally, we estimated the financings would generate $1 million for the company. With $1.35 million, we can expand this phase of our exploration program to give us the best opportunity to demonstrate the MacLeod Lake Project has substantially larger resources than is currently published in the 43-101 report."
About Western Troy: Western Troy Capital Resources Inc. is a mineral exploration company. Its 100%-owned MacLeod Lake Property hosts a well defined Main Zone of mineralization as outlined by extensive drilling, as well as the South Zone and several IP anomalies of potential interest. The shares of Western Troy trade on the TSX-Venture exchange under the symbol WRY, with 10,096,952 shares outstanding. Last October, Western Troy received an independent Technical Report consistent with National Instrument 43-101 on its MacLeod Lake Property located about 275 km north of Chibougamau, Quebec. The report has been filed on SEDAR and is available at www.SEDAR.com and on the company's website, www.WesternTroy.com.
Statements in this release that are forward-looking reflect Western Troy's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement. For more information, please contact:
FOR FURTHER INFORMATION PLEASE CONTACT:
Western Troy Capital Resources Inc.
Rex E. Loesby, P.E.
(416) 922-6290 (FAX)