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| | Thu Apr 1, 2010
Virginia Energy Announces $2.0 Million Private Placement
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| | News Release: 10-11
Virginia Energy Resources Inc. (TSX.V: VAE) is proposing to raise up to $2.0 million as a non-brokered private placement by the issuance of 10 million Units, subject to regulatory approval. Each unit will comprise one common share at a price of $0.20 CDN per share and one half of a share purchase warrant exercisable at $0.35 per share for a two year period. Shares issued under this financing will be subject to a hold period of 4 months and one day from the closing date of the offering. The warrants will have an Accelerator Clause whereby if the Company's shares trade at or greater than a weighted average price $0.60 per share for ten consecutive days after the 4-month hold period, the remaining exercise period may be reduced, at the election of the Company and upon notice to the warrant holders, to 25 days.
Funds from this financing will be allocated to advancement of the Company's uranium exploration properties in the Otish Basin, Quebec, to increasing the Company's equity interest in the Coles Hill uranium deposit and to general working capital. In accordance with Exchange regulations, finders' fees may be payable to accredited agents on that portion of the funds raised by third parties. Insiders are expected to participate for a portion of the placement. The private placement financing is expected to close on or before April 15, 2010.
Virginia Energy has also entered into a private transaction to acquire 4 million shares of VA Uranium Holdings, Inc. at a 1:1.1 ratio, subject to regulatory approval. Upon completion of the funding agreement for 2010 and the aforementioned private transaction, the Company will hold a 31.2% interest in the Coles Hill deposit which is estimated to contain 119 million pounds of U3O8 (98.7 Mt at 0.060 percent U3O8 at a cut-off grade of 0.025 percent U3O8) based on an April 29, 2009 National Instrument 43-101 Technical Report prepared for the Company by Behre Dolbear and Company Ltd., Marshall Miller and Associates Inc., and PAC Geological Consultants Inc. (Dr. Peter Christopher, P.Eng.). This report is available on SEDAR and on Virginia Energy Resources' website. A recently commissioned Scoping Study, see March 8, 2010 news release, will update the economic and technical parameters for the proposed development of this project.
The technical information in this news release has been reviewed by Michael S. Cathro, P.Geo., Virginia's Vice-President of Exploration and a Qualified Person as defined in National Instrument 43-101.
About Virginia Energy
Virginia Energy is a mining exploration company focused primarily on the energy sector. Emphasis is being placed on uranium projects in the Athabasca Basin of Saskatchewan, the Otish Basin of Quebec and an equity interest in the large Coles Hill uranium deposit in south-central Virginia.
On Behalf of the Board of Directors
VIRGINIA ENERGY RESOURCES INC.
"Norman Reynolds"
Norman Reynolds, President & CEO
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Norman Reynolds, President or Tony Perri - Investor Relations, Manager
Suite 611, 675 W. Hastings Street Vancouver, British Columbia, Canada V6B 1N2
Tel: (604) 669-4799 Website: www.virginiaenergyresources.com |
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