Toronto, Canada, November 6, 2006 - Western Goldfields, Inc. (TSX:WGI, OTC BB:WGDF.OB) today announced that the U.S. Securities and Exchange Commission (SEC) has declared effective the Company's Form S-3 Registration Statement as filed on October 5, 2006. Western Goldfields has also filed a short-form shelf prospectus under the multijurisdictional disclosure system (MJDS) in each of the provinces of Canada, except Quebec.
Western Goldfields may now issue securities in the United States and Canada from time to time and through one or more methods of distribution and may raise up to US$100 million under this Registration Statement. The securities may consist of any or a combination of common shares, preferred stock, senior or subordinated debt securities and related guarantees, and warrants to acquire the above securities. The securities may be offered, separately or together, in separate series, in amounts, at prices and on terms to be set forth in the prospectus contained in the S-3 Registration Statement and in one or more supplements to the prospectus and may only be offered pursuant thereto. These securities, if issued, will be freely tradable.
"Western Goldfields has filed the Registration Statement and the Canadian shelf prospectus to allow the Company greater flexibility in selecting the most attractive source of financing for the Mesquite mine expansion", said Mr. Randall Oliphant, Chairman, Western Goldfields. "The securities which may be offered are intended to be in addition to or as a complement to project financing options which we are currently exploring," he added. The Company currently has no commitments to sell any securities under the Registration Statement, but will consider such options, subject to favorable market conditions and the Company's capital requirements.
Western Goldfields, Inc.
Western Goldfields acquired the Mesquite property in 2003 from Newmont Mining Corporation. Newmont originally operated the mine until 2001 when it ceased operations, as the low gold prices at that time did not support expansion plans. However, Newmont continued the permitting process for expansion, and the permits were approved in 2002.
Under a new, highly experienced, and dynamic management team, Western Goldfields is a gold producer focused on completing the expansion of its Mesquite Mine, located in Imperial County, California, and returning the mine to full production. For further details, please visit the Company's website at www.westerngoldfields.com.
Forward-Looking Information
Certain statements contained in this news release and subsequent oral statements made by and on behalf of the Company may contain forward-looking information within the meaning of the United States Private Securities Litigation reform Act of 1995 and similar Canadian legislation. Such forward-looking statements are identified by words such as "intends", "anticipates", "believes", "expects", and "hopes" and include, without limitation, statements regarding the Company's plan of business operations, financing options and the consequences thereof, potential contractual arrangements, receipt of working capital, anticipated revenues, and related expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, those set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2005 filed with the U.S. Securities and Exchange Commission, under the caption, "Risk Factors". Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulation, the Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
This news release is neither an offer to sell nor a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering is being made only by means of a prospectus which may be obtained in the United States on the EDGAR section of the SEC's website at www.sec.gov and in Canada on www.sedar.com.
For further details, please visit www.westerngoldfields.com, or contact:
Brian Penny
Chief Financial Officer
(416)-324-6002
bpenny@westerngoldfields.com
Julie Taylor Pantziris
Director, Regulatory Affairs and Investor Relations
(416)-324-6015
jtaylor@westerngoldfields.com
Richard Wertheim
Investor and Media Relations
Wertheim + Company Inc.
(416)-594-1600
wertheim@wertheim.ca
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