Virginia: New Acquisition Near Sept-Iles and Financing
Remainder
QUEBEC, QUEBEC--Virginia Gold Mines Inc. ("Virginia") is pleased
to announce the signature of an option agreement with le Fonds
Regional d'Exploration Miniere de la Cote-Nord ("FREM") and two
local prospectors on the Lac Labrie project located 30 km west of
Sept-Iles, Quebec. This agreement is subject to the approval of
regulatory authorities.
Under the terms of the agreement, Virginia has the option to
acquire a 100 percent interest in this property of 9 claims (144
hectares) in return for $100,000 exploration work and cash
payments or shares totalling $50,000 over the next three years.
Virginia will be the operator.
The Lac Labrie property straddles the western margin of the Sept-
Iles complex and is underlain by anorthosites and anorthositic
gabbros in contact with paragneisses. Many
pyrrhotite-chalcopyrite showings have been discovered within the
anorthosites and gabbros among which some 2 m X 30 m massive
sulfur lens. These zones have returned anomalous values in copper
and nickel that reach 1.9 percent Cu and 0.3 percent Ni. An
exploration program consisting of line cutting and geophysical
surveys will be done this coming winter and followed by
prospecting and mapping during the next summer.
Virginia has recently signed an agreement with two Canadian
brokerage firms in order to raise funds, on a best effort basis,
on a private placement partly done in June 1996.
The financing will be done through the issuance of special
warrants at a price of $3.25 per special warrant. Each whole
share purchase warrant will entitle its holder to purchase, at no
additional cost, one common share at the price of $4.25 within a
period of 18 months.
With this private placement, Virginia anticipates raising funds
between $4,000,000 and $8,000,000 which proceeds will be used to
accelerate the development of Virginia's numerous projects,
particularly La Grande Sud, Auclair, Minto-Vizien, Sept-Iles and
Opinaca. A closing of the financing is scheduled for December 19,
1996.
The special warrants and the common shares and warrants to be
issued upon their exercise have not been and will not be
registered under the U.S. Securities Act of 1933 and may not be
offered or sold in the United States without registration or an
applicable exemption from registration requirements.
DECEMBER 16, 1996 |
