MOSS LAKE GOLD MINES LTD. TERMINATES RIGHTS OFFERING IN FAVOUR OF $2,000,000 LOAN FROM WESDOME GOLD MINES LTD.
April 25 2011 - 4:05PM
PR Newswire (Canada)
TORONTO, April 25 /CNW/ -- /NOT FOR DISSEMINATION IN THE UNITED
STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT
CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN./ TORONTO,
April 25 /CNW/ - Moss Lake Gold Mines Ltd. ("Moss Lake") today
announced that it would terminate its previously announced rights
offering in favour of obtaining a $2,000,000 loan (the "Loan") from
Wesdome Gold Mines Ltd. ("Wesdome"). In consideration for the Loan,
Moss Lake proposes to issue to Wesdome a convertible unsecured
promissory note having a two year term and bearing interest at a
rate of 8% per annum (the "Note"). The principal amount of the Note
is to be convertible into common shares in the capital of Moss Lake
(each, a "Moss Lake Share" or a "Share") at a price of $0.50 per
Share. At present, Wesdome owns approximately 57.5% of the issued
and outstanding Moss Lake Shares and Wesdome and Moss Lake have
certain directors and officers in common. If Wesdome converts the
principal amount of the Note into Moss Lake Shares, Wesdome will
acquire an additional 4,000,000 Shares (or an additional 3.36% of
the issued and outstanding Moss Lake Shares). Moss Lake is
currently indebted to Wesdome in the amount of approximately
$334,000. Moss Lake intends to use the proceeds of the Loan to
develop its Moss Lake property and for working capital and general
administrative purposes. The Moss Lake Shares trade on the TSX
Venture Exchange (the "TSXV") under the symbol "MOK". Moss Lake
currently has 46,434,679 Shares issued and outstanding. Neither the
TSXV nor its Regulation Services Provider (as that term is defined
in the policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this press release. Except for statements
of historical fact contained herein, the information in this press
release may constitute "forward-looking information " within the
meaning of Canadian securities law. Other than statements of
historical fact, all statements are "forward-looking statements",
including, without limitation, the use of proceeds of the Loan,
that involve various known and unknown risks and uncertainties and
other factors, such as market conditions. There can be no assurance
that such statements will prove accurate. Results and future events
could differ materially from those anticipated in such statements.
Readers of this press release are cautioned not to place undue
reliance on these "forward-looking statements". Except as otherwise
required by applicable securities statutes or regulation, Moss Lake
expressly disclaims any intent or obligation to update publicly
forward-looking information, whether as a result of new
information, future events or otherwise. To view this news release
in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/April2011/25/c6628.html
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td /td td /td td nowrap="nowrap" Corporate
Development /td /tr /table p align="center" 8 King St. East, Suite
1305br/ Toronto, ON M5C1B5br/ Toll Free: 1-866-4-WDO-TSXbr/ Phone:
416-360-3743, Fax: 416-360-7620br/ Email: a
href="mailto:info@mosslakegold.com"info@mosslakegold.com/a,
Website: a
href="http://www.mosslakegold.com"www.mosslakegold.com/a /p
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