June 2, 2011
LAC LA HACHE, BRITISH COLUMBIA - GWR Resources Inc. (“GWR”) (TSX Venture: GWQ) is pleased to announce that it has closed a non-brokered private placement by issuing 4,000,000 units (“Unit”) at a price of $0.45 per Unit, for gross proceeds of $1,800,000 exclusively with Macquarie Bank Limited’s Metals and Energy Capital Division (“Macquarie”) an internationally respected investor in mineral properties and mine development. The proceeds of the private placement will be used to fund the acquisition of office and testing facilities at Lac La Hache, British Columbia, for exploration at the Lac La Hache Project and for general corporate purposes.
Each Unit is comprised of one common share of GWR and one-half of one warrant, each whole warrant being exercisable into one common share of GWR for a period of two years at a price of $0.65.
The securities sold in the Private Placement have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”), and have not been offered or sold in the United States or to U.S. persons (as defined in Regulation S under the 1933 Act).
In connection with this private placement and subject to Macquarie maintaining specified minimum levels of equity ownership, Macquarie may nominate one director to the GWR Board of Directors and one member to GWR’s Technical Advisory Board. Macquarie has a right to participate in any financings for a period of three years.PROJECT BACKGROUND
Exploration success on our Lac La Hache, BC Skarn/Porphyry Property in 2010 and 2011 followed our strategic decision to test historical Skarn-hosted copper-magnetite-gold-silver located within the Spout Lake Skarn zones (www.gwrresources.com
). Aggressive drilling (almost 16,000 m by 2 drills) of new detailed ground magnetic anomalies that effectively delineate the mineralization has demonstrated potential for economic deposits, combined with excellent infrastructure and encouraging metallurgy. The skarns typically contain high copper, with 2-meter cut NQ core assays commonly returning grades better than 0.7 % and frequently exceeding 1 % Cu. Associated, high magnetite concentrations generate iron assays ranging from 20% to 50% or more (see http://www.gwrresources.com/i/pdf/Spout_Lake_Assays.pdf
). The magnetite itself provides significant value in addition to the copper, gold and silver.
New ground magnetic surveys in the Peach Lake area located east of the Spout Lake skarns have produced very positive high-magnetic targets indicative of similar magnetite-skarn potential over an area completely untested and much larger than the Spout Lake magnetic anomalies. (see details in our latest Technical Presentation at http://www.gwrresources.com/s/Presentations.asp
). GWR will include bedrock sampling and drill testing of the Peach Lake anomalies in the Summer Drilling Program, planned to commence July 4, 2011.
As previously reported (May 30, 2011 News Release) the Company has initiated several changes to improve management, administration, accountability and reduce overhead costs. Previous President and CEO I. Eisler has been replaced on an acting basis by John Brown, until selection of a longer-term candidate is made. R. Shives will remain as VP Exploration and Director, as will long-standing Directors D. Reimer and D. James. The Company has consolidated all office and field functions under one roof at Lac La Hache.
The new Board looks forward to successful, strategic collaboration to bring the Lac La Hache Project to a production decision as soon as possible and is extremely pleased to have Macquarie involved as a substantial shareholder.GWR RESOURCES
GWR is an active mineral exploration company currently exploring for gold and base metals on two properties within Canada. The Lac La Hache copper-gold porphyry/skarn project hosts multiple zones containing commercial grades of gold, copper, silver and magnetite. The project is located in British Columbia’s prolific Quesnel Trough between producing mines at Imperial Metals’ Mt. Polley Copper-Gold Mine and New Gold Inc.’s New Afton Copper Gold project (Teck-Cominco’s legendary Afton mine). The Lac La Hache project is well-served by rail, road and power infrastructure. The Sainte Sabine gold (+Ag, Zn, Cu) property is located within the Bellechasse Mineral Belt in southeastern Quebec, adjacent to known zones on Golden Hope Mines’ Bellechasse Project.
For further information, please contact:
John Brown, Chairman
Telephone Number: 780-909-6630Neither the 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.
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