January 21, 2008 08:00 ET

VenCan Gold Corporation Announces Closing of $1,680,000 Private Placement Financing With the MineralFields Group & Other Investors

TORONTO, ONTARIO--(Marketwire - Jan. 21, 2008) - VenCan Gold Corporation (TSX VENTURE:VCG) ("Vencan") announces the closing of a brokered and non-brokered financing of $1,375,000 and $305,000 respectively through the sale of 16,800,000 flow through units ("FT Unit") at $0.10 per unit for gross proceeds of $1,680,000. Each FT Unit consisted of one common share of VenCan issued as a "flow-through share" and one-half of one non-flow-through common share purchase warrant. Each common share purchase warrant entitles the holder thereof to purchase one common share of the capital stock of VenCan that is not a "flow-through share" at an exercise price of $0.13 per common share for a period of eighteen months after closing. In conjunction with the financing, finders received fees of $91,250 and broker options to acquire 962,500 Units exercisable at $0.10 per Unit for a period of eighteen months after closing.

Mineral Fields Group subscribed 10,000,000 flow through units and insiders of the Company subscribed for 2,750,000 flow through units respectively.

All securities issued under the private placement are subject to a hold period of four months plus a day from closing.

The proceeds from the private placement will be used by VenCan for exploration work on the Atikokan property.

"We are very pleased to be entering into this relationship with MineralFields Group," said Kirk McKinnon, President and CEO of VenCan. "This is an important milestone in the growth of VenCan and we look forward to working with MineralFields Group as we develop our holdings in the Atikokan region."

Following the issuance of the common shares pursuant to the private placement, 85,388,641 common shares are issued and outstanding and with 108,729,141 common shares on a fully diluted basis.

About MineralFields, Pathway and First Canadian Securities®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at First Canadian Securities®, a division of Limited Market Dealer Inc., is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, with investors both within, and outside of MineralFields Group.

WARNING: The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.

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

Contact Information

  • VenCan Gold Corporation
    Brent Nykoliation
    Director of Business Development
    (416) 364-7024
    VenCan Gold Corporation
    J.A. Kirk McKinnon
    President & Chief Executive Officer
    (416) 364-7024
    VenCan Gold Corporation
    Richard Schler
    Vice-President & Chief Financial Officer
    (416) 364-7024
    (416) 364-2753 (FAX)