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~ Company Receives $1,164,950 To Date ~
VANCOUVER, BC / ACCESSWIRE / June 12, 2020 / VanGold Mining Corp (the "Company" or "VanGold") (TSXV:VGLD) is providing an update on its warrant acceleration bonus program (the "Bonus Program") announced May 27, 2020 for share purchase warrants (the "Warrants") granted in connection with the Company's 2019 non-brokered private placement financing (the "2019 Financing").
To date, 11,649,500 Warrants have been exercised under the Bonus Program for 11,649,500 common shares ("Shares") at a price of $0.10 per Share for gross proceeds of $1,164,950, of which directors and officers of the Company have exercised a total of 6,500,000 Warrants for net proceeds of $650,000, and amounting to approximately 55.8% of the warrants exercised thus far. The company is advised that funding for a portion of the exercise of warrants by directors and officers was facilitated through the sale of a portion their existing share holdings.
Based on the foregoing, a total of 1,164,950 bonus Shares are issuable to eligible holders who have exercised their Warrants to date under the Bonus Program. Under the Bonus Program the Company is offering eligible holders a bonus of 1/10 of one Share for each Warrant exercised early, being the equivalent of one whole bonus Share for every 10 Warrants exercised.
CEO James Anderson stated, "We would like to thank our warrant holders, and our shareholders both old and new, who have participated in the Bonus Program thus far. We would also like to remind all remaining warrant holders that they have until June 26, 2020 to exercise their Warrants and receive their 10% share bonus."
Under the 2019 Financing, the Company raised a total of $1,290,475 through the issuance of 25,809,500 units (the "Units") at a price of $0.05 per Unit, of which 7,800,000 Units or 30.22% of the 2019 Financing were purchased by directors and officers of the Company. Each Unit consisted of one Share and one Warrant, with each Warrant entitling the holder to purchase one additional Share for a period of 24 months at an exercise price of $0.10.
The net proceeds from the Bonus Program will be used to accelerate exploration and development of the Company's El Pinguico silver and gold project near Guanajuato, Mexico, and for general corporate and working capital purposes.
In order to participate in the Bonus Program, eligible holders of Warrants must exercise their Warrants by no later than June 26, 2020 (the "Bonus Deadline"). If all eligible Warrants are exercised on or before the Bonus Deadline, a maximum of 2,001,055 bonus Shares will be issued under the Bonus Program. Any Warrants not exercised by the Bonus Deadline will remain in full force and effect according to their terms for the remainder of their original 24 month term.
You may contact Richard Silas, Director of VanGold Mining Corp., at (604) 448-2297 with any questions regarding how to exercise your Warrants under the Bonus Program.
The El Pinguico Project:
El Pinguico is a high-grade gold and silver deposit that was mined from the early 1890s until 1913. The mining was done exclusively 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, but very limited drilling has been done on the property and no drilling has attempted to encounter the Veta Madre at depth.
Historic stockpiles of mineralized material exist on surface and underground at El Pinguico which may potentially provide feed to one of several operational mills in the Guanajuato area.
Hernan Dorado, 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 company engaged in the exploration of mineral projects in the Guanajuato region of central Mexico. The Company's flagship El Pinguico project is a significant past producer of high-grade gold and silver and is located just 7km south of the city of Guanajuato, Mexico. The Company remains focused on the near-term potential for development and monetization of both its surface and underground stockpiles of mineralized material from El Pinguico.
ON BEHALF OF THE BOARD OF DIRECTORS
Chairman and CEO
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.
SOURCE: VanGold Mining Corp
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