Further to its news releases dated April 29 and February 22, 2008, Africa West Minerals Corp. ("Africa West" or the "Company") announces that it has completed the share purchase (the "Gold Rim Acquisition") of all of the outstanding shares of Gold Rim Exploration Inc. in consideration for which it has issued to the shareholders of Gold Rim an aggregate 4,200,000 common shares of Africa West.
The Company also announces that it has completed the previously announced non-brokered private placement. An aggregate 6,344,167 Units of the Company (344,167 Units more than the 6,000,000 Units initially proposed) were issued at a price per Unit of $0.15 for gross proceeds of $951,624.85. Each Unit consists of one common share in the capital of the Company and one-half of one non-transferable share purchase warrant, each whole warrant entitling the holder thereof to acquire one additional common share in the capital of the Company at a per share price of $0.25 until June 9, 2010, subject to accelerated expiry in certain circumstances. All securities issued are subject to a four month hold period until October 10, 2008. The proceeds from the private placement will be used, in part, to make payments for, and conduct exploration on, the properties acquired pursuant to the Gold Rim Acquisition and for general corporate purposes.
Africa West paid an aggregate $16,590 cash and issued 192,570 Units and 49,000 finder's warrants (each finder's warrant entitling the holder to purchase one common share in the capital of Africa West at a per share price of $0.15 until June 9, 2010) as finder's fees to four arm's-length entities in connection with identification of subscribers to this private placement.
As a result of the Gold Rim Acquisition, Gold Rim Exploration Inc. has become a wholly-owned subsidiary of Africa West and Africa West has acquired title to the following Mining Licenses located in Tanzania and Kenya, East Africa.
Within 6km of Barrick's 10 million ounce Bulyankhulu Gold Mine
Small scale gold production. Near former gold and copper producing McAlder Mine
Former gold producer. 250,000 ounces at 13.6 g/t
Along strike of the Rosterman Gold Mine
Adjacent to the Rosterman Gold Mine
Gold showings in the Kakamega Greentone Belt
Prospective gold property in the southern Nyanzan Province.
Africa West is also pleased to welcome Jeffrey Scott Ackert as a director and the Vice-President, Business Development of the Company, Basha Hifato as Manager of East Africa operations, and Guy Pas as a director of the Company. For further biographies of these individuals, please see the Company's previous news release dated April 29, 2008.
The technical content of this news release has been prepared under the supervision of Jeffery Ackert who is a Qualified Person under National Instrument 43-101.
For additional information, please contact:
James T. Gillis, President & CEO
Telephone: (250) 314-0186
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Africa West believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Africa West's management on the date the statements are made. Africa West undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.
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