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| | Wed May 19, 2010
Virginia Energy Enters Definitive Agreement for Share Conversion
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| | NR: 10-16
Virginia Energy Resources Inc. (the "Company") (TSX.V: VAE) is pleased to announce that it has entered into a definitive agreement for the share conversion originally announced on April 1, 2010. Pursuant to the terms of the definitive agreement, the Company will, subject to regulatory approval, acquire 4 million shares of VA Uranium Holdings, Inc. ("Virginia Uranium") from a company controlled by Norman Reynolds, a director and officer of the Company, in exchange for the issuance of 4,400,000 shares of the Company. This transaction will increase the Company's direct and indirect holding in Virginia Uranium from 26.2% to 29%.
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, referred to in the Company's 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., the Company'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.
"Ronald Netolitzky"
Ronald Netolitzky, Director
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release. |
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