Additional Funding Requirements As discussed, the mineral properties of VG Gold are in the exploration and development stage and, as a result, the Company has no source of operating cash flow. The Company intends to raise such additional funds to complete its projects. There is no assurance that VG Gold will be able to raise additional funds on reasonable terms. The development of any ore deposits found on the exploration properties of VG Gold depends on the ability of the Company to obtain financing through debt financing, equity financing or other means. If the exploration and development programs of VG Gold are successful, additional funds will be required to develop the properties and, if successful, to place them in commercial production. The only source of future funds presently available to VG Gold is the sale of equity capital of VG Gold, or the sale by VG Gold of an interest in any of its properties in whole or in part. The ability of VG Gold to arrange such financing in the future will depend in part upon the prevailing capital market conditions as well as the business performance of the Company. Nature of Operations
VG Gold is an exploration and development company engaged in the mining business. Some of its mineral properties are currently being explored and developed, and the Company has not yet determined whether these properties contain reserves that are economically recoverable. The recoverability of the amount shown for mineral properties is dependent upon the existence of economically recoverable reserves, as established in accordance with National Instrument No. 43-101, the ability of VG Gold to obtain the necessary financing to complete exploration and development and upon future profitable production or proceeds from disposition of such properties.
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