VanGold Mining Closes Final Tranche of Private Placement
VanGold Mining Corp has completed the second tranche of its non-brokered private placement, issuing 1,797,740 units at $0.155 per unit for gross proceeds of $278,650. This brings the total capital raised from both tranches to $3,974,495 through 25,641,902 units. Each unit consists of one common share and a one-half warrant, which allows the purchase of additional shares at $0.25 for two years. Funds will support exploration at the El Pinguico asset, an area with a rich history of high-grade gold and silver mining.
- Raised a total of $3,974,495 from the private placement, enhancing the financial position.
- Funds will facilitate exploration and development at the El Pinguico project, which has significant historical mining activity.
- The warrant exercise price of $0.25 is higher than the current unit price, potentially indicating market skepticism.
- The company faces risks related to exploration activities, including potential delays and environmental challenges.
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / August 14, 2020 / VanGold Mining Corp (the "Company" or "VanGold") (TSXV:VGLD) is pleased to announce it has closed the second and final tranche of its non-brokered private placement of units ("Units") at a price of
In aggregate, the company issued a total of 25,641,902 Units for gross proceeds of
All securities issued in connection with the second tranche of the Financing are subject to a four month hold period expiring December 12, 2020 and the Company has paid certain finder's fees in cash, shares and/or warrants in accordance with the policies of the TSX Venture Exchange.
Said VanGold CFO Xavier Wenzel, "The Company now has sufficient funds to comfortably pursue its exploration and development plans at the El Pinguico asset."
Work to clear the El Pinguico shaft and enter into and explore the underground workings of the mine as disclosed in the Company's news release of July 21, 2020 are ongoing. Crews have now installed a large winch and hoist to the Company's El Pinguico shaft head frame. Crew members have reached the mine's 6th level and are continuing to clear a pathway to the 7th (or Sangria) level. Further details on the progress of this work will be forthcoming in future news releases.
The El Pinguico Project:
El Pinguico is a high-grade gold and silver deposit that was mined from the early 1890s until 1913. Toward the end of that period it was mined exclusively by The Pinguico Mines Company of New York City, whose shares traded on the Boston and New York Stock Exchanges. The mining was done principally from the El Pinguico and El Carmen veins, which are thought to be splays off the Mother Vein, or ‘Veta Madre'.
The Veta Madre is associated with a mega fault that outcrops for 25 kilometres and is the most important source of precious metal mineralization in the region. The Veta Madre may cross VanGold's property at depth, underneath the high grade El Pinguico and El Carmen veins. Very limited drilling has been done on the property and no drilling has attempted to encounter the Veta Madre at depth.
Hernan Dorado Smith, a director of VanGold and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.
About VanGold Mining Corp.
VanGold Mining is an exploration and development company engaged in reactivating high-grade past producing silver and gold mines near the city of Guanajuato, Mexico. The Company's El Pinguico project is a significant past producer of both silver and gold located just 7km south of the city. The Company remains focused on the near-term potential for development and monetization of its surface and underground stockpiles of mineralized material at El Pinguico, and in delineating silver and gold resources through underground and surface drilling on projects located in this historic mining camp.
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
Continue to watch our progress at: www.vangoldmining.com
This new release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains certain forward-looking statements, which relate to future events or future performance (including, but not limited to, the actual size, timing and use of proceeds of the Financing, the proposed work program at the Company's El Pinquico project in Mexico, and the potential for near term monetization of existing stockpiles of mineralized material at El Pinguico) and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, currency rate fluctuations, actual results of exploration and development activities, environmental risks, future prices of gold, silver and other metals, operating risks, accidents, labor issues, delays in obtaining governmental or regulatory approvals and permits, and other risks in the mining industry. In addition, there is uncertainty about the spread of COVID-19 and the impact it will have on the Company's operations, supply chains, ability to access El Pinguico or procure equipment, contractors and other personnel on a timely basis or at all and economic activity in general. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by law.
VANGOLD MINING CORP.
PH: +1(778) 989-5346 E: info@vangoldmining.com W: vangoldmining.com
CA: Suite 2820 - 200 Granville Street, Vancouver B.C. V6C 1S4
MX: Carr, Guanajuato - Silao km 5.5 Colonia Marfil Guanajuato, Mexico Office No.2 CP 36250
SOURCE: VanGold Mining Corp
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