VMS Ventures Inc.
TSX VENTURE : VMS

VMS Ventures Inc.

October 18, 2007 08:12 ET

VMS Ventures Inc. Announces $19,500,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

VMS Ventures Inc. ("VMS" or the "Company") (TSX VENTURE:VMS) is pleased to announce that it plans on raising up to $19,500,000 through a brokered private placement offering of Units and Flow-Through Shares. The private placement, which will be offered by a syndicate of agents led by GMP Securities L.P and including Evergreen Capital Partners Inc. and Jennings Capital Inc. (collectively the "Agents") on a best efforts basis, will consist of up to 8,000,000 units (the "Units") of the Company at a price of $1.50 per Unit and up to 5,000,000 common shares of the Company which qualify as flow-through shares for the purposes of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $1.50 for each Flow-Through Share.

Each Unit will consist of one common share of the Company (a "Unit Share") and one transferable common share purchase warrant of the Company (a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one common share of the Company (a "Warrant Share") at a price of $2.25 for a period of two years following the closing date of the private placement.

Closing of the offering is anticipated to occur on or before November 7, 2007 and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The Unit Shares, Flow-Through Shares and Common Shares issuable upon exercise of the Warrants will be subject to resale restrictions for a period of four months plus one day from the closing date of the private placement.

The net proceeds from the sale of the Units will be used to fund ongoing exploration and development activities and for general corporate purposes. The gross proceeds received by the Company from the sale of the Flow Through Shares will be used to incur eligible Canadian Exploration Expenses ("CEE") that qualify as Canadian Exploration Expenses for purposes of the Income Tax Act (Canada) and which will be renounced in favor of the holders with an effective date of no later than December 31, 2007.

About VMS Ventures Inc.

VMS Ventures Inc. is focused primarily on acquiring, exploring and developing copper-zinc properties in the Flin Flon-Snow Lake VMS Belt. The Company also holds the largest land package considered prospective for nickel-copper mineralization at Lynn Lake, which is to date Canada's third largest nickel producing camp. The Company's project portfolio consists of the Snow Lake VMS project, the Lynn Lake Gabbros nickel-copper project, the Nickel Belt project, the South Bay nickel-copper-cobalt PGE property, and the Eden Lake Carbonatite Complex, Specialty Metals property. All VMS Ventures Inc. properties are located in the mining friendly province of Manitoba, Canada.

ON BEHALF OF THE BOARD OF DIRECTORS

Rick Mark, CEO & Chairman

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • VMS Ventures Inc.
    Keith Patey
    Director of Communications
    (604) 986-2020 or Toll Free: 1-866-816-0118
    Website: www.vmsventures.com
    or
    Coal Harbor Communications
    Steve Kubota
    (604) 662-3237 or Toll Free: 1-866-405-3955