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| | Fri Apr 9, 2010
Virginia Reports Golden Band Will Buy Back Equity Interest in Saskatchewan Gold Projects
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| | News Release: 10-13
Virginia Energy Resources Inc. (TSX.V: VAE) is pleased to announce that it has received notice of an offer from Golden Band Resources Inc. (TSX.V: GBN), to buy back Virginia Energy's (formerly Santoy Resources Ltd.) 8% equity interest in several of Golden Band's more advanced gold exploration projects located in the La Ronge Greenstone Belt in northern Saskatchewan. Virginia earned the 8% participating interest in 2008 by funding certain exploration expenditures (please see news release dated August 6, 2008). The acquisition will result in Golden Band once again holding a 100% interest in these properties.
Under the terms of the agreement, Golden Band will pay to Virginia Energy $750,000 cash and 7,500,000 common shares at a deemed price of $0.40 per share to extinguish a further $3,000,000 of the previously agreed repurchase price. In completing the buyback in advance of commercial production, Virginia has accepted a $250,000 reduction in the cash payment. The Golden Band shares will be held in escrow pending release on a quarterly basis, beginning November 1, 2010.
Golden Band and Virginia Energy have two common directors. These directors abstained from voting at the meeting of the directors of Golden Band held to review and approve this transaction.
The transaction is subject to regulatory approval and is expected to close upon receipt of approval.
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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