Wheels Group Inc GRFJF

C$30M Bought-Deal Offer at $3.05

[jfallenangel]

Western Goldfields Plans C$30M Bought-Deal Offer >WGI.T September 20, 2007 4:50pm ET DOW JONES NEWSWIRES Toronto's Western Goldfields Inc. (WGI.T) has entered into an agreement with a syndicate of underwriters co-led by Wellington West Capital Markets Inc. and RBC Capital Markets to sell 9,840,000 shares at C$3.05 each, for proceeds of C$30,012,000. Western Goldfields said the financing is scheduled to close on or about Oct. 12 and proceeds will be used for general corporate purposes. Western Goldfields is a mining company. According to the TSX Web site, the company has about 118 million shares outstanding. -Tara Zachariah; 416-306-2100; [e-mail] (END) Dow Jones Newswires 09-20-07 1649ET Copyright (c) 2007 Dow Jones & Company, Inc.

[thedave2006]

floor set. dave.

[nwtfe]

Maybe, but why is there addtional financing required when this mine is fully financed? Also, the reason given "general corporate purposes" is weak. Tell me you're over budget, tell me you want to drill more, tell me anything, but don't tell me you need 30 Mil in working capital. I get very worried when companies dilute shareholder value with no clear indication as to what

[maxncompany]

I'd suspect a small to moderate size acquisition. They already had more money than needed to get into full production.

[stocksnbonds]

I see a small acquisition in the cards as well. If not, I agree that shares should not be diluted either. These guys are great finance people. It's a good time to go to the market given the current price of WGI. I'd much prefer it now than at the sub $2.50 level we were at not too long ago. They have a bit of cash still on the line of credit. That along with the 30MM should give the

[loantech1]

With up to 79 million in the till when this closes if they take the full draw on their credit line. 200 bucks per ounce gold in the ground for resources? I am thinking at least two mill recoverable ounces adding 200K per year to Mesquite production? Or 300 per ounce and 1.5 millounces another 150K per year. Either sounds good to me as the dilutiojn is not that bad. Just speculating no doubt left a