August 25, 2008 13:29 ET

Vencan Gold Corporation Announces Closing of $675,000 Non-Brokered Private Placement Financing With the MineralFields Group & Other Investors

TORONTO, ONTARIO--(Marketwire - Aug. 25, 2008) - VenCan Gold Corporation (TSX VENTURE:VCG) ("Vencan") announces the closing of a non-brokered financing of 13,500,000 flow through units ("FT Units") at $0.05 per unit for gross proceeds of $675,000. 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 $0.12 per common share for a period of eighteen months after closing. In conjunction with the financing, finders received fees of $16,250 and broker options to acquire 457,100 Units exercisable at $0.05 per Unit for a period of eighteen months after closing.

MineralFields Group subscribed 6,530,000 flow through units and Stone Asset Management subscribed for 5,000,000 FT Units. The balance of 1,970,000 FT Units were acquired by insiders.

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

Proceeds of the financing will be used for exploration, property acquisition and general working capital.

"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 and Timmins regions."

VenCan Gold Corporation's current exploration focus is Ontario where it has three properties - Abitibi West, Moffatt and Mt. Logano. VenCan Gold maintains its website with corporate information, reports and images of its exploration projects.

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.


The Board of Directors of the Company granted 1,365,000 stock options to directors, officers and consultants of the Company under the terms of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by shareholders at the last annual general meeting of shareholders of the Company held on January 17, 2008. The options are exercisable at a price of $0.10 per share for a period of four years and are subject to a four-month hold period from the date of the issuance thereof.

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.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

SEDAR: 00004007E

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

Contact Information

  • VenCan Gold
    Brent Nykoliation
    Director of Business Development
    (416) 364-7024
    (416) 364-2753 (FAX)

    VenCan Gold
    Richard Schler
    Vice President & CFO
    (416) 364-7024
    (416) 364-2753 (FAX)