Western Areas increases investment in Mustang

Western Areas NL has increased its investment in Canadian listed nickel compan....

  Western Areas NL has increased its investment in Canadian listed nickel company Mustang Minerals Corp. to 19.2% after exercising 4,570,401 warrants at CAD$0.45 (AUD$0.52) per warrant, for a total CAD$2.05 million (AUD$2.36 million).Mustang Minerals owns a number of advanced nickel and PGE exploration projects in Ontario and Manitoba. Mustang’s main assets are the 100% owned Maskwa nickel deposit and surrounding Bird River greenstone belt holdings in southern Manitoba. Mustang is in the final stages of a pre feasibility study for an open pit and potential underground mine at the Maskwa nickel/copper/PGE deposit which contains a total ‘in pit’ Indicated Mineral Resource containing 51,500 tonnes nickel plus an Inferred Mineral Resource containing 4,500 tonnes nickel.Western Areas Managing Director Julian Hanna said: “Our increased investment in Mustang reflects Western Areas confidence that Maskwa can be brought into early production. We also see an opportunity for additional significant nickel, copper and PGE discoveries elsewhere on Mustang’s substantial tenement holdings in Canada.” Western Areas NL previously entered into a subscription agreement with Mustang where Western Areas acquired 8,571,429 common shares and 4,570,401 warrants in Mustang for aggregate consideration of CAD$3 million (AUD$3.45 million)Each warrant entitles Western Areas to acquire one common share of Mustang at an exercise price of CAD$0.45 per share until December 6, 2007. Western Areas has elected to exercise 4,570,401 warrants to acquire 4,570,401 common shares of Mustang (total payment CAD$2,056,680.The acquisition of the 4,570,401 common shares will result in the WSA having a 19.2% ownership interest in the outstanding capital of Mustang. The common shares will be listed on the TSX Venture Exchange once issued.