Wellgreen Platinum Announces C$6.0 Million Bought Deal

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 11, 2014) -

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Wellgreen Platinum Ltd. (TSX VENTURE:WG)(OTCQX:WGPLF) ("Wellgreen Platinum", the "Company") is pleased to announce that it has entered into an agreement with Dundee Securities Ltd., on behalf of a syndicate of underwriters (collectively, the "Underwriters"), with H.C. Wainwright & Co., LLC to act as a U.S. Placement Agent, to purchase, on a "bought deal" basis by way of a base shelf short form prospectus, 9,231,000 units of the Company (the "Units") at a price of C$0.65 per Unit for total gross proceeds of C$6,000,150 (the "Offering"). The Underwriters have been granted the option (the "Over-Allotment Option") to purchase up to an additional 15% of the Offering, exercisable in whole or in part at any time up to 48 hours prior to the closing of the Offering.

Each Unit shall consist of one common share ("Share") of the Company and one full common share purchase warrant ("Warrant"). Each Warrant shall entitle the holder thereof to acquire one Share of the Company at a price of $0.90 for a period of 24 months following the Closing Date. In the event that the Company's Shares trade at a closing price at or greater than $1.35 per Share for a period of 10 consecutive trading days, at any time following the closing of the Offering, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.

The Offering is scheduled to close on or about June 24, 2014. The Units will be qualified for sale by way of a prospectus supplement (to the Company's short form base shelf prospectus dated May 12, 2014 (the "Base Shelf Prospectus")), which will be filed in the Provinces of British Columbia, Alberta, Manitoba and Ontario. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including the approval of the TSX Venture Exchange.

The net proceeds of the Offering will be used for completion of prefeasibility study work on its flagship Wellgreen project, to further exploration on its properties and development and for general corporate purposes.

In connection with the Offering, the Underwriters will receive a cash commission equal to 6.0% of the gross proceeds raised under the Offering and that number of compensation options equal to 4.5% of the number of Units sold. Each compensation option will be exercisable into one Unit of the Company for a period of 24 months from the closing of the Offering at a price equal to the Offering price.