Wescan Goldfields Inc. announces closing of first tranche of private placement

    




 /NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE  DISTRIBUTION SERVICES/  

 Stock Symbol: WGF: TSX-V 

 SASKATOON, Dec. 22, 2011 /CNW/ - Wescan Goldfields Inc. ("Wescan" or the  "Corporation") is pleased to announce that it has closed the first  tranche of its private placement financing consisting of an aggregate  of 14,285,714 common shares in the capital of the Corporation ("Common  Shares") issued on a flow-through basis pursuant to the Income Tax Act (Canada) (each a "FT Share") at a price of $0.07 per FT Share for  aggregate gross proceeds of approximately $1,000,000 (the "Offering"). 

 The Corporation will pay certain finders (each a "Finder") cash fees  equal to up to 6% of the gross proceeds raised by such Finder pursuant  to the Offering, and will issue such Finder warrants equal to 7% of the  number of FT Shares attributable to such Finder pursuant to the  Offering (the "Finder's Warrants"). Each Finder's Warrant will entitle  the holder to acquire one Common Share on a non flow-through basis at  an exercise price of $0.15 for a period of 24 months from the date of  issuance. 

 All securities issued pursuant to the Offering and the Finder's Warrants  will be subject to a four month hold period in accordance with  applicable securities laws and exchange regulations. 

 Proceeds realized from the Offering will be applied to fund further  exploration on the Corporation's Jojay Gold Project in northern  Saskatchewan located in the La Ronge Gold Belt and potentially a  preliminary economic assessment on this property. The funds may also be  used to complete a National Instrument 43-101 compliant Technical  Report and Resource Estimate on the defined mineralized areas of the  Jasper Gold deposit located in the La Ronge Gold Belt, to do  preliminary exploration on the Munro Lake gold property in northern  Saskatchewan and on trend with Claude Resources Inc.'s Santoy zones, as  well as for general corporate purposes. 

 Wescan is a Canadian-based corporation engaged in the acquisition,  exploration and development of mineral properties. Shares of Wescan  trade on the TSX Venture Exchange under the trading symbol "WGF". 

 Caution Regarding Forward-Looking Statements 

 Certain statements contained in this press release constitute  forward-looking statements in respect of the proposed Offering  including those relating to the tax treatment of the FT Shares and the  use of the net proceeds by Wescan. These forward-looking statements are  based on Wescan's current beliefs as well as assumptions made by and  information currently available to Wescan. Although management  considers these assumptions to be reasonable based on information  currently available to it, they may prove to be incorrect. By their  very nature, forward-looking statements involve inherent risks and  uncertainties, both general and specific, and risks exist that  predictions, forecasts, projections and other forward-looking  statements will not be achieved. We caution readers not to place undue  reliance on these statements as a number of important factors could  cause the actual results to differ materially from the beliefs, plans,  objectives, expectations, anticipations, estimates and intentions  expressed in such forward-looking statements. These factors include,  but are not limited to, developments in world coal and gold markets,  changes in exploration plans due to exploration results and changing  budget priorities of Wescan, the effects of competition in the markets  in which Wescan operates, the impact of changes in the laws and  regulations regulating mining exploration and development, judicial or  regulatory judgments and legal proceedings, operational and  infrastructure risks and tax treatment of the FT Shares. 

 This press release shall not constitute an offer to sell or the  solicitation of an offer to buy the securities in any jurisdiction. The  Common Shares and the FT Shares will not be and have not been  registered under the United States Securities Act of 1933 and may not  be offered or sold in the United States absent registration or an  applicable exemption from the registration requirements. 

 The TSX Venture Exchange has not reviewed and does not accept  responsibility for the adequacy or accuracy of this News Release. 



Wescan Goldfields Inc.


CONTACT:  Darren Anderson, President or Harvey Bay, Chief FinancialOfficer, at(306) 664-2422 


    

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