SOURCE: Vangold Resources Ltd.

November 02, 2007 19:37 ET

Vangold Announces Private Placement

VANCOUVER, BC--(Marketwire - November 2, 2007) - Vangold Resources Ltd. (TSX-V: VAN) ("Vangold") announces that it has agreed to a private placement of its securities consisting of the sale of up to 6,000,000 units at a price of $0.50 per unit. Each unit will consist of one share and one non-transferable share purchase warrant exercisable for a period of one year at a price of $0.60 per share purchase warrant. The proceeds of the private placement will be used to continue the various work programs in for the exploration, development of Vangold's oil and gas projects in Canada, Armenia, Rwanda and Kenya and mineral exploration in Uganda and Papua New Guinea. The private placement is subject to approval by the TSX Venture Exchange. A Finder's Fee not to exceed TSX Venture Exchange guidelines, is payable on a portion of the proceeds of the private placement.

A majority of the units will be acquired by Firebird Global Master Fund Ltd. ("Firebird") Vangold's largest shareholder. Firebird is affiliated with New York based Firebird Management LLC, which manages over US$2 billion in seven funds, with a particular focus on the former Soviet Union and other emerging markets. Firebird is also Vangold's 49% partner in Horn Rare Metals Ltd ("Horn"). Horn controls a 90% interest in seven beryllium mines located in Uganda and has the rights to hold a 100% interest in two beryllium mines located in Brazil. Horn is currently undertaking a proposed business combination with Janina Resources Limited ("Janina") which has filed with the TSX Venture Exchange for initial comments on a draft preliminary filing statement (See News Release November 1, 2007). Upon completion of the proposed business combination, Janina will change its name to International Beryllium Corp.

To find out more about Vangold Resources Ltd. please visit our website or contact Dal Brynelsen at 604-684-1974 or by email brynelsen@vangold.ca or visit our website at www.vangold.ca.

On Behalf of the Board of

VANGOLD RESOURCES LTD.

"Dal Brynelsen"
Dal Brynelsen, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Contact:
    Dal Brynelsen
    604-684-1974
    Email Contact

    VANGOLD RESOURCES LTD.
    Suite 880, 609 Granville Street
    P.O. Box 11032
    Vancouver, BC
    Canada, V7Y 1G5
    Phone: 604-684-1974
    Fax: 604-685-5970
    www.vangold.ca