WGF NewsWescan announces acquisition of Jojay Gold Deposit
13:27 EDT Thursday, August 31, 2006
Stock Symbol: WGF: TSX-VEN
SASKATOON, SK, Aug. 31 /CNW/ - M. F. (Moe) Lindsay, President of Wescan Goldfields Inc. ("Wescan") is pleased to announce that Wescan has signed a Letter of Intent ("LOI") with Claude Resources Inc. ("Claude") to acquire Claude's 75% of the Jojay Gold Deposit to hold 100% of the property. The Jojay Gold Deposit was formerly held by Wescan (25% and operator) and Claude (75%) under a Joint Venture agreement. Under the terms of the LOI, subject to regulatory approval, Wescan will acquire Claude's interest by the issuance of three and one half million (3.5 M) Wescan common shares.
The Jojay Gold Deposit is located in the LaRonge Greenstone Belt of northern Saskatchewan. Wescan previously disclosed historical resource estimate information on the Jojay Gold Deposit in a news release dated July 6, 2005 which may be viewed at www.sedar.com.
Moe Lindsay stated: "This acquisition fits Wescan's stated strategy of consolidating property holdings in the LaRonge Greenstone Belt thereby identifying sufficient gold resources in the area to feed a central gold processing plant. We like this project, particularly at today's gold prices, and plan to aggressively advance the Jojay Gold Deposit."
Neil McMillan, the CEO of Claude stated: "The Jojay Gold Deposit is not part of Claude's long term strategic plan but we recognize the deposit as being at an advanced exploration phase and have every confidence that Wescan is in a position to unlock its potential very quickly. Given the quality and potential of Wescan as an exploration and development company, we are delighted to participate in the Jojay property's upside as a significant shareholder of Wescan."
Wescan is also pleased to announce that it has created a wholly owned Mexican subsidiary, Minera Abundancia, which has been registered in the Mexican state of Chihuahua. Mr. Lindsay notes that this is another step in achieving another part of Wescan's strategic plan of establishing itself in the international mining community. "Creation of the Mexican entity prepares Wescan to acquire advanced exploration projects in a very exciting and active part of the world that has great potential as witnessed by recent successes of a number of other Canadian companies in Mexico; we are actively pursuing opportunities in Mexico."
Wescan is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Venture Exchange under the trading symbol "WGF".
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."
For further information: M. F. (Moe) Lindsay, President, or Wade MacBain, Corporate Development, at (306) 664-2422
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