Vangold Mining (VGLD-V) Warrant Acceleration Bonus Program
May 27, '20 - NR
Vangold Mining Corp. has adopted a warrant acceleration bonus program for its outstanding share purchase warrants granted in connection with the company's 2019 non-brokered private placement financing, subject to acceptance of the TSX Venture Exchange.
Under the 2019 Financing, the Company successfully raised a total of $1,290,475 through the issuance of 25,809,500 units (the "Units") at a price of $0.05 per Unit, of which an aggregate of 7,800,000 Units or 30.22% of the 2019 Financing were purchased by directors and officers of the Company (the "Insiders"). Each Unit consisted of one common share and one share purchase warrant (a "Warrant"), with each Warrant entitling the holder to purchase one additional common share for a period of 24 months at an exercise price of $0.10.
VanGold has determined it is in the best interests of the Company to raise additional capital to fund the exploration and development of the Company's El Pinguico silver and gold project near Guanajuato, Mexico, and for general corporate and working capital purposes through accelerating the exercise of the Warrants issued under the 2019 Financing by offering the holders thereof a bonus of 1/10 of one common share (each whole share a "Bonus Share") for each one Warrant exercised early, being the equivalent of one whole Bonus Share for every 10 Warrants exercised. In order to participate in the Bonus Program, eligible holders of Warrants must exercise their Warrants by no later than June 26, 2020 (the "Bonus Deadline").
As of the date hereof, there are a total of 25,809,500 Warrants outstanding, of which 7,800,000 Warrants or 30.22% are held by Insiders of the Company. However, TSXV policies limit the number of Warrants held by Insiders eligible to participate in the Bonus Program to a maximum of 10% of eligible Warrants thereby resulting in a total of 20,010,555 Warrants (the "Eligible Warrants") eligible to participate in the Bonus Program.
If all of the Eligible Warrants are exercised on or before the Bonus Deadline, a maximum of 2,001,055 Bonus Shares will be issued under the Bonus Program. Any Warrants not exercised by the Bonus Deadline will remain in full force and effect according to their terms for the remainder of their original 24 month term.
About Vangold Mining Corp.
On December 27, 2018 Vangold announced its intention to complete a Reverse Take Over transaction of private company Aventura Gold Ltd. to gain control of 100% of the Tassawini gold project in Guyana, South America. Completion of the transaction is subject to a number of conditions including, but not limited to, Exchange acceptance and, if applicable, disinterested shareholder approval. There can be no assurance that the transaction will be completed as proposed or at all and accordingly trading in securities of Vangold should be considered highly speculative. Details of the Company's progress regarding the transaction will be announced shortly.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Anderson"
Chairman and CEO
For further information regarding Vangold Mining Corp, please contact:
James Anderson, Director, +1 (778) 989-5346
Email: james@vangoldmining.com |
