West Mining to Issue 7M Shares for Option on Central Quebec Mineral Claims
WESMF has more than doubled off its 52-week low of $0.014.
Summary
West Mining Corp. has entered into an option agreement to acquire a 100% interest in 16 mineral claims, totaling approximately 817.5 hectares, located in central Quebec. The consideration for this option involves the issuance of an aggregate of 7,000,000 common shares to the optionor over a two-year period. The initial tranche of 6,000,000 shares, valued at a deemed price of $0.05625 per share, is expected to be issued within five business days. For a micro-cap exploration company, acquiring new claims is a strategic move to expand its resource potential, but the issuance of 7,000,000 shares represents a material potential dilution to existing shareholders. Traders will be assessing the long-term potential of these new claims against the immediate dilutive impact.
At the time of this announcement, WESMF was trading at $0.06 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $2M. The 52-week trading range was $0.01 to $0.37. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: TheNewswire.