N.A. Tungsten closes debenture financing

North American Tungsten Corp Ltd (C:NTC)
Shares Issued 126,826,725
Last Close 9/22/2008 $0.45
Tuesday September 23 2008 - News Release

Mr. Stephen Leahy reports

NORTH AMERICAN TUNGSTEN CORPORATION LTD. CLOSES US$3,000,000 CONVERTIBLE DEBENTURE

North American Tungsten Corporation Ltd. has closed its previously announced (see news issued in Stockwatch) $3-million (U.S.) convertible debenture financing for a one-year term with two placees. The convertible debenture bears interest at 8 per cent per year, payable quarterly and is convertible (principal and unpaid interest) into common shares of the company at $1.00 per share expiring Sept. 22, 2009. The conversion rate is fixed at 94 U.S. cents for the term resulting in a maximum conversion ratio of 1,067 common shares for every $1,000 (U.S.). The proceeds will be used for exploration and development of the MacTung project, CanTung mine and general corporate purposes. The securities issued under this placement are subject to a four-month hold period pursuant to applicable Canadian securities laws and the rules of the TSX Venture Exchange that expires on Jan. 23, 2009.

While there are obvious differences between this project and ours, this is evidence that debt financing deals are still being done. This company is not profitable but was still able to secure a loan.

Its only 3M$ and the debt is convertable which would not be desireable in our case but much of what we hear about credit facilities drying up is banks unwillingness to lend to each other because they are afraid of the other banks inability to repay due to questionable balance sheets. A tangible asset such as Largos prospective vanadium mine is a great deal less risky...and the (solvent)banks have to lend to someone to make money off of.