VEDRON GOLD INC. FINANCING ANNOUNCEMENT
5/30/2006 Toronto, ON May 30, 2006 FSC / Press Release
VEDRON GOLD INC. FINANCING ANNOUNCEMENT
Toronto, Ontario CANADA, May 30, 2006 /FSC/ - Vedron Gold Inc. (TSX - VX: VG, FWB: VN3), today announces the completion of the final closing of the non-brokered private placement announced on May 11, 2006. The company issued 6,012,334 shares and 2,456,167 warrants for funding totaling $3,607,400 on completion of the financing.
On the initial closing May 17, 2006 the Company issued 4,863,334 units at $0.60 per unit and 1,100,000 flow through shares at $0.60 per share, for gross proceeds of $3,578,000. The second and final closing was completed on May 26, 2006 and the Company issued 49,000 units for $29,400. Each unit consists of one common share and one-half of one common share purchase warrant. Each full warrant entitles the holder to purchase one common share of the Company at a price of $0.66 per share until December 29, 2006. An agency fee of 5% in cash and 10% in broker warrants, expiring 12 months from closing, was paid to Coniston Investment Corp.
Proceeds from the private placement will be used for exploration work on the Company's mineral properties in Ontario, and for general working capital. The shares are subject to a hold period of four months and one day.
Vedron also has agreed to change, subject to regulatory approval, the terms of the outstanding $200,000 one year note issued to an arms length vendor that was announced on February 3, 2006, and is payable on February 3, 2007. The new terms give the note holder the right to convert the note into shares of the Company at a price of $0.60 per share.
To learn more about Vedron Gold Inc. visit the Company website at www.vedron.com
FOR FURTHER INFORMATION CONTACT: Thomas Meredith, PresidentTel.: 416-368-0099Fax: 416-368-1539
The TSX Venture Exchange has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this release.
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