Western Magnesium Closes Oversubscribed Non-Brokered Private Placement for Proceeds of $546,568.80

(TheNewswire)

NEW YORK, NY – TheNewswire – January 17, 2020 – Western Magnesium Corporation (TSXV:WMG) (Frankfurt-M1V) (OTC:MLYF) ("Western Magnesium" or the “Company”) is pleased to announce the closing of its previously announced non-brokered private placement (see news release dated January 9, 2020).  

Due to increased investor interest, the financing was oversubscribed and closed on 3,643,792 Units at a price of CDN$0.15 per Unit for gross proceeds of CDN$546,568.80

The Company also announces that it has cancelled the private placement previously announced on September 12, 2019.

The Offering

Each Unit consists of one common stock in the capital of Western Magnesium Corporation (the "Common Stock") and one Common Stock Purchase Warrant (the "Warrants"). Each Warrant will be exercisable into one Common Stock for a period of one year at a price of CDN$0.21/stock.  The Warrants are subject to an acceleration clause which gives the Company the right, on thirty (30) days’ written notice (the “Call Notice”), to require a Holder to exercise the Warrants, so long as the closing trading price of the Company’s common shares exceeds CDN$0.30 per stock for at least ten (10) consecutive trading days at any time prior to the date of the Call Notice.  The Warrants will terminate on the date that is thirty (30) days from the date of the Call Notice in the event that the Holder has not exercised the Warrants in accordance with the terms of the Call Notice by such date.

The securities issued in connection with the Offering will be subject to a Canadian hold period expiring four months and one day from the date of issuance of the securities.  The completion of the private placement and payment of any commission and fees remains subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.  Proceeds from the Offering will be used for working capital.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.  

About Western Magnesium

Western Magnesium's goal is to be a low-cost producer of green, primary magnesium metal, a strategic commodity prized for its strength and light weight. Unlike outdated and costly production processes, Western Magnesium looks to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and energy costs relative to current methods and processes, while being environmentally friendly.

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward‐looking statements in this news release include the Company’s vision of how Western Magnesium can become the world’s foremost producer of low-cost, green magnesium metal; the intended use of proceeds raised; the intention to, and benefits of, using a continuous silicothermic process to produce magnesium; the terms, pricing and number of Units issued, and the acceptance of the TSX Venture Exchange of each tranche of Units. Actual results may differ materially from those currently anticipated due to a number of factors, including the Company's dolomite reserves may not be mined because of technical, regulatory, financing or other obstacles, the market price for magnesium may make our resources uneconomic, we may not be able hire and retain skilled employees, we may not receive the acceptance of the TSX Venture Exchange for one or more tranches of Units, we may not be able to close a tranche of Units because of market conditions and other risks associated with being a mineral exploration and development company. The Company undertakes no obligation to update forward‐looking information except as required by law. The reader is cautioned not to place undue reliance on forward‐looking statements. These forward-looking statements are made as of the date of this news release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this news release.  Such securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and, accordingly, may not be offered or sold within the United States, or to or for the account or benefit of persons in the United States or “U.S. Persons”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.  

This news release is not for distribution to U.S. Newswire Services or for dissemination in the United States

For additional information please visit our website at

http://www.westmagcorp.com or view our profile on SEDAR

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