WYN DEVELOPMENTS INC. ENGAGES RELIANCE ENGINEERING GROUP LTD. FOR NI 51-101 COMPLIANT RESERVES EVALUATION ANNOUNCES CAD $700,000 NON-BROKERED PRIVATE PLACEMENT
Vancouver, British Columbia, Canada - June 07, 2007 - Wyn Developments Inc. ("Wyn Developments" or the "Company") announces Calgary based Reliance Engineering Group Ltd. is currently preparing the Company's National Instrument 51-101 compliant report on natural gas reserves data.
This asset reserve evaluation is a vital step towards accurately assessing the contributing ratios of each participating entity in the previously announced plan to form a business combination with several of the Company's northeastern British Columbia, Canada, natural gas development project partners; Bighorn Petroleum Ltd. (tsx.v:BHP), Flying A Petroleum Ltd. (tsx.v:FAB), and Tenaka Drilling Consortium Ltd. It is anticipated this reserve evaluation will be completed and released to shareholders by mid to late June. The NI 51-101 reserve evaluation will provide the regulatory compliant data required to accurately finalize the parameters of the proposed business combination in a plan of arrangement. The plan of arrangement will provide a complete and accurate picture of the business combination to all participants' shareholders. According to the current timeline, the plan of arrangement is anticipated to be released to shareholders by mid July. Shareholders will then be asked to vote on the transaction in the respective participant's shareholders meetings, anticipated late August. The approximate timeline for this business combination would see the transaction close late September, early October subject to regulatory approvals.
In addition, the Company is announcing a private placement of up to 3.5 million units at CAD $0.20 for gross proceeds of up to CAD $700,000 to finance the aforementioned process. Each unit consists of one share and one purchase warrant exercisable at $0.35 for a period of two years from closing, subject to regulatory approval. These funds are anticipated to adequately cover the associated operating costs through closing of the proposed business combination, including NI 51-101 compliant resource evaluations, financial, legal and accounting costs, as well as working capital. Dave McMillan, President & CEO of the Company, is subscribing for CAD $35,000 or 175,000 units.
A portion of the previously announced private placement (April 16, 2007) of up to 4 million units priced at CAD $0.25 was closed in part and the available balance has expired. The Company raised CAD $175,000 at $0.25 per unit totaling 700,000 units. Each unit consists of one share and one purchase warrant exercisable at CAD $0.35 for a period of two years. Dave McMillan, President and CEO of the Company, subscribed for CAD $125,000 or 500,000 units at CAD $0.25.
Finders fees may be payable in accordance with TSX Venture Exchange policies.
In addition, the TSX Venture Exchange has consented to the extension in the expiry date of the following warrants from last year's private placements:
2,485,157 warrants, exercisable at CAD $0.50. The original expiry date was May 25, 2007. The new expiry date is May 25, 2008.
2,748,571 warrants, exercisable at CAD $0.45. The original expiry date was September 25, 2007. The new expiry date is September 25, 2008.
8,196,000 warrants, exercisable at CAD $0.50 for 501,000 warrants and $0.45 for 7,695,000 warrants. The original expiry date was November 29, 2007. The new expiry date is November 29, 2008.
The above is subject to TSX Venture Exchange approval.
About Canada Rare Earths
Canada Rare Earths is a growth company focused on the exploration and development of rare earth elements at its 100% owned Goeland Rare Earths Project within the Montviel carbonatite complex, Montviel Township Quebec, immediately adjacent to Geomega's (TSX-V: GMA) recent rare earth discovery. The Goeland property located 215 km north of Val-d'Or, is road accessible and consists of 47 claims totaling approximately 2,600 hectares. Since the acquisition of the Goeland Project, the Company, in a short period of time, has successfully established itself in one of the largest Carbonatite complexes in North America. Worldwide, carbonatite-related deposits are a major host for rare earths elements ("REE"). The world's most advanced and prolific REE deposits in production or development, Bayan Obo (China), Molycorp's Mountain Pass (USA), Lynas's Mount Weld (Aus), and Rare Earth Element Resource's Bear Lodge project, are all hosted by carbonatites.
For more information on Canada Rare Earths, please contact our Head Office.
On Behalf of the Board of Canada Rare Earths Inc.
Chad McMillan
President & CEO
Neither 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. All of the above is subject to TSX.V and regulatory acceptance.
FORWARD LOOKING STATEMENTS
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's Pre-Development Agreement and the exploration of the Goeland Project, constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's obligations pursuant to the Pre-Development Agreement and planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Canada Rare Earth's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Rare Earths does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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