/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, June 28, 2016 /CNW/ - Wellgreen Platinum Ltd.
(TSX: WG; OTC-QX: WGPLF) ("Wellgreen Platinum" or the "Company") is
pleased to announce that Electrum Strategic Opportunities Fund L.P.
("Electrum") has indicated that it intends to participate in the
previously announced private placement of common shares, at a price
of C$0.30 per share, by Board members
of Wellgreen Platinum (the "Private Placement"). Electrum,
which has a pro rata right pursuant to the terms of a unit purchase
agreement between the Company and Electrum dated March 9, 2016, will subscribe for 4,359,333
common shares, which is over and above its pro rata
entitlement. Electrum's subscription will result in gross
proceeds to the Company of approximately C$1,307,800.
Assuming the exercise in full of all remaining pro rata rights,
the Private Placement is expected to result in the issuance of
approximately 6,872,587 common shares, for gross proceeds to the
Company of approximately C$2,061,776. If no remaining pro rata
rights are exercised, the Private Placement is expected to result
in the issuance of approximately 6,135,833 common shares, for gross
proceeds to the Company of approximately C$1,840,750.
Diane R. Garrett, the Company's
President and Chief Executive Officer, commented, "We are thrilled
by the continued support of Electrum, and look forward to working
with them, and with all stakeholders, to move the Wellgreen project
and the Company forward".
The Private Placement is subject to, among other things, receipt
of all applicable regulatory approvals, including approval of the
Toronto Stock Exchange ("TSX"). All Shares issued in the
Private Placement will be subject to a statutory four month hold
period.
The net proceeds of the Private Placement will be used for the
development of the Company's Wellgreen PGM-nickel project in the
Yukon and for general corporate
purposes.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About Wellgreen Platinum
Wellgreen Platinum is a Canadian mining exploration and
development company focused on the active advancement of its 100%
owned Wellgreen platinum group metals (PGM) and nickel project.
Located in Yukon, Canada,
the 2015 Preliminary Economic Assessment demonstrated that the
Wellgreen PGM-nickel project has the potential to become a large,
low cost, open pit producer of platinum, palladium, gold, nickel,
and copper. The Wellgreen property is accessible from the
paved Alaska Highway, which leads
to year-round deep sea ports in southern Alaska.
The Company is led by a management team with a track record of
successful large-scale project discovery, development, financing
and operation. Our vision is to create value for our
shareholders through development of the Wellgreen deposit into a
leading North American PGM and nickel producer.
Cautionary Note Regarding Forward Looking Information:
This news release includes certain information that may be
deemed "forward-looking information". Forward-looking information
can generally be identified by the use of forward-looking
terminology such as "may", "will", "expect", "intend", "believe",
"continue", "plans" or similar terminology, or negative
connotations thereof. All information in this release, other than
information of historical facts, including, without limitation,
regarding the exercise by any party of a pro-rata right to
participate in the Private Placement, the precise number of shares
to be issued under the Private Placement, the completion of the
Private Placement, the expected use of proceeds, the receipt of TSX
approval, the size and scale of the Wellgreen deposit, future
exploration and development of the Wellgreen PGM-nickel project,
the undertaking of future activities and work programs at the
Wellgreen PGM-nickel project, realization of the potential of the
Wellgreen deposit, the active advancement of the Wellgreen
PGM-nickel project, and general future plans and objectives for the
Company and the Wellgreen PGM-nickel project, are forward-looking
information that involve various risks and uncertainties. Although
the Company believes that the expectations expressed in such
forward-looking information are based on reasonable assumptions,
such expectations are not guarantees of future performance and
actual results or developments may differ materially from those in
the forward-looking information. For more information on the
Company and the key assumptions, risks and challenges with respect
to the forward looking information discussed herein, and about our
business in general, investors should review the 2015 PEA technical
report on the Wellgreen PGM-nickel project, our most recently filed
annual information form, and other continuous disclosure filings
which are available at www.sedar.com. Readers are cautioned not to
place undue reliance on forward-looking information. The Company
does not undertake to update any forward looking information,
except in accordance with applicable securities laws.
SOURCE Wellgreen Platinum Ltd.