MOSS LAKE GOLD MINES LTD. ANNOUNCES $2,000,000 LOAN FROM WESDOME GOLD MINES LTD. AND ISSUANCE OF NOTE
April 29 2011 - 3:38PM
PR Newswire (Canada)
TORONTO, April 29 /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 29 /CNW/ - Moss Lake Gold Mines Ltd. ("Moss Lake") is pleased
to announce that it has obtained a $2,000,000 loan (the "Loan")
from Wesdome Gold Mines Ltd. ("Wesdome") as was originally
announced by press release on April 25, 2011. In
consideration therefor, Moss Lake issued 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 $0.50 per Share. The Note remains subject to
regulatory approval, including the approval of the TSX Venture
Exchange (the "TSXV"). 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 Moss Lake
Shares (or an additional 3.36% of the issued and outstanding Moss
Lake Shares as at today's date). 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. In accordance with National Instrument 45-102 - Resale of
Securities and Policy 3.2 of the TSXV Corporate Finance Manual, the
Note and the Moss Lake Shares issuable upon conversion of all or
any part of the Note are subject to a four month hold period
expiring on August 30, 2011. The Moss Lake Shares trade on 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/April2011/29/c8142.html
p George Mannard, P.Geo. - Presidentbr/ 8 King Street East, Suite
1305br/ Toronto, ON M5C 1B5br/ 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 cr="true"
href="http://www.mosslakegold.com"www.mosslakegold.com/a /p
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