West African Resources Completes Acquisition of Channel Resources
January 20 2014 - 9:00AM
Marketwired
West African Resources Completes Acquisition of Channel Resources
PERTH, AUSTRALIA--(Marketwired - Jan 20, 2014) - West African
Resources Limited ("West African") (ASX:WAF) reports that it has
successfully completed the previously announced 100% acquisition of
Channel Resources Ltd. ("Channel") (formerly TSX-VENTURE:CHU) on
January 17, 2014.
West African has issued 32,036,754 ordinary shares and
14,918,508 three year share purchase warrants exercisable at A$0.40
per share to former Channel shareholders. In addition, West African
has issued 1,365,000 share purchase options in exchange for Channel
options. West African shares and the warrants will commence trading
on the TSX Venture Exchange ("TSXV") during the week of January 20,
2014 under symbols "WAF" and "WAF Wt". Channel shares have been
halted from trading on TSXV immediately pending delisting.
West African Managing Director Richard Hyde said: "We are
pleased to have completed the acquisition which will see Channel's
Tanlouka project become a key part of our project portfolio in
Burkina Faso.
"Tanlouka is adjacent to our existing Boulsa project and already
has a known gold resource.
"We will commence work at Tanlouka with initial drilling
programs focussing on improving the oxide and transitional
components of the Mankarga 5 resource, while also targeting higher
grade mineralisation at depth with diamond drilling, leading to a
resource upgrade by the end of the first quarter of 2014.
"Scoping studies will be completed in the first half of 2014
with a focus on creating a low-cost heap leach starter project,
targeting near term cash-flow from the combination of West
African's and Channel Resources' near surface gold assets.
"We are excited by our debut on the TSXV and thank the former
management and shareholders of Channel Resources for their support
and confidence in the merger."
This news release contains "forward-looking information"
within the meaning of applicable Canadian and Australian securities
legislation, including information relating to West African's or
Channel's future financial or operating performance may be deemed
"forward-looking". All statements in this news release, other than
statements of historical fact, that address events or developments
that West African or Channel expects to occur, are "forward-looking
statements". Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by
the words "expects", "does not expect", "plans", "anticipates",
"does not anticipate", "believes", "intends", "estimates",
"projects", "potential", "scheduled", "forecast", "budget" and
similar expressions, or that events or conditions "will", "would",
"may", "could", "should" or "might" occur. All such forward-looking
statements are based on the opinions and estimates of the relevant
management as of the date such statements are made and are subject
to important risk factors and uncertainties, many of which are
beyond West African or Channel's ability to control or predict.
Forward-looking statements are necessarily based on estimates and
assumptions (including that the Transaction will be completed
successfully on the terms agreed upon by the parties and that the
business of Channel will be integrated successfully into the West
African organization) that are inherently subject to known and
unknown risks, uncertainties and other factors that may cause
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking statements. In the case of Channel and West
African, these facts include their anticipated operations in future
periods, planned exploration and development of its properties, and
plans related to its business and other matters that may occur in
the future, including the listing of West African's ordinary shares
on the TSX Venture Exchange. This information relates to analyses
and other information that is based on expectations of future
performance and planned work programs. Statements concerning
mineral resource estimates may also be deemed to constitute
forward-looking information to the extent that they involve
estimates of the mineralization that will be encountered if a
mineral property is developed.
None of the securities anticipated to be issued under the
Arrangement have been or will be registered under the Securities
Act of 1933, as amended, or any state securities laws, and such
securities are anticipated to be issued in the United States
pursuant to exemptions from such registration requirements. This
press release shall not constitute an offer to sell or solicitation
of an offer to buy any securities in any jurisdiction where such an
offer or sale would be unlawful.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
West African Resources LimitedRichard HydeManaging Director+ 61
8 9481
7344info@westafricanresources.comwww.westafricanresources.com
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