MOK Moss Lake Gold Mines Ltd

TORONTO, April 25 /CNW/ -- /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN./ TORONTO, April 25 /CNW/ - Moss Lake Gold Mines Ltd. ("Moss Lake") today announced that it would terminate its previously announced rights offering in favour of obtaining a $2,000,000 loan (the "Loan") from Wesdome Gold Mines Ltd. ("Wesdome"). In consideration for the Loan, Moss Lake proposes to issue to Wesdome a convertible unsecured promissory note having a two year term and bearing interest at a rate of 8% per annum (the "Note"). The principal amount of the Note is to be convertible into common shares in the capital of Moss Lake (each, a "Moss Lake Share" or a "Share") at a price of $0.50 per Share. At present, Wesdome owns approximately 57.5% of the issued and outstanding Moss Lake Shares and Wesdome and Moss Lake have certain directors and officers in common. If Wesdome converts the principal amount of the Note into Moss Lake Shares, Wesdome will acquire an additional 4,000,000 Shares (or an additional 3.36% of the issued and outstanding Moss Lake Shares). Moss Lake is currently indebted to Wesdome in the amount of approximately $334,000. Moss Lake intends to use the proceeds of the Loan to develop its Moss Lake property and for working capital and general administrative purposes. The Moss Lake Shares trade on the TSX Venture Exchange (the "TSXV") under the symbol "MOK". Moss Lake currently has 46,434,679 Shares issued and outstanding. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release. Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information " within the meaning of Canadian securities law. Other than statements of historical fact, all statements are "forward-looking statements", including, without limitation, the use of proceeds of the Loan, that involve various known and unknown risks and uncertainties and other factors, such as market conditions. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "forward-looking statements". Except as otherwise required by applicable securities statutes or regulation, Moss Lake expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/April2011/25/c6628.html table border="0" tr td nowrap="nowrap" George Mannard, P.Geo. /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td or /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td Donovan Pollitt, P. Eng /td /tr tr td nowrap="nowrap" President V.P. /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td   /td td nowrap="nowrap" Corporate Development /td /tr /table p align="center" 8 King St. East, Suite 1305br/ Toronto, ON M5C1B5br/ Toll Free: 1-866-4-WDO-TSXbr/ Phone: 416-360-3743, Fax: 416-360-7620br/ Email: a href="mailto:info@mosslakegold.com"info@mosslakegold.com/a, Website: a href="http://www.mosslakegold.com"www.mosslakegold.com/a /p

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