Vedron Gold Inc. ("Vedron"), TSX-V:VG, FRANKFURT:VN3 is pleased to announce a financing in the amount of $5,000,000 gross proceeds (the "Offering") consisting of up to $4,000,000 of flow-through units ("Flow-Through Units") and up to $1,000,000 of hard dollar units ("Hard Dollar Units"). Each Flow-Through Unit will be offered at a price of $0.40 and will consist of one flow-through common share and one-half of one common share purchase warrant (each whole such share purchase warrant a "Warrant"). Each Hard Dollar Unit will be offered at a price of $0.40 and will consist of one common share and one Warrant. In addition, Vedron has granted the agent in the Offering an option to increase the size of the Offering by up to $500,000 through the issue of additional Flow-Through Units or Hard Dollar Units, which is exercisable by the agent in the Offering, in whole or in part, at any time until 24 hours prior to the date of closing. If the option is exercised in full the aggregate gross proceeds from the Offering will be $5,500,000.
Each Warrant will entitle the holder to purchase one additional common share of Vedron, which shall not be a flow-through share, at a price of $0.60 for a period of 18 months from the date of closing (the "Warrant Term"). If after the date that is four months following closing, the common shares of Vedron close at $0.90 or more for 20 consecutive trading days, then the Warrant Term shall be automatically reduced to 30 days from the date that Vedron provides the holders of Warrants with written notice of the new expiry date.
Vedron has engaged Primary Capital Inc. ("Primary") as agent to complete the financing. Vedron will pay Primary a cash commission equal to 5% of the gross proceeds raised in connection with the Offering. In addition, Vedron will issue to Primary broker warrants entitling Primary to acquire that number of Hard Dollar Units that is equal to 7% of the number of Flow-Through Units and Hard Dollar Units sold in the Offering. Each broker warrant will be exercisable at $0.40 for a period of 18 months from the date of closing.
Northfield Capital Corp. (TSXV-NFD.A) has committed the lead order for the Offering. All of the securities issued and issuable in the Offering will have a hold period expiring four months and one day after the day of closing. Completion of the Offering is subject to the approval of the TSX Venture Exchange.
The proceeds raised from the issuance of the Hard Dollar Units will be used for general working capital purposes and the proceeds raised from the issuance of the Flow-Through Units will be used for the continued exploration of Vedron's Timmins gold projects.
Vedron is pleased to also announce that John Tait will be appointed chief operating officer of the Corporation and a member of the board of directors on completion of the Offering. Mr. Tait was previously president of Southern Star Resources where he led its successful exploration program up to the recent merger that formed Gold Eagle Mines Ltd.
Vedron also announces the issuance of 1,600,000 options having a term of 5 years, exercisable at $0.60 per share to officers, directors, employees and consultants of the Corporation.
|