Virginia Mines Inc.
TSX : VGQ

Virginia Mines Inc.

December 11, 2009 14:14 ET

Virginia Closes an Additional CA $1.27 M Flow-Through Private Financing

QUEBEC CITY, QUEBEC--(Marketwire - Dec. 11, 2009) -

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Virginia Mines Inc. ("Virginia")(TSX:VGQ) announces the closing of an additional $1.27 million to the flow-through private placement announced on November 12, 2009. The placement consists of 146,830 flow-through common shares at a price of $8.67 per share for gross proceeds of $1,273,016. The additional placement brings the total gross proceeds to $3,848,752.

Casimir Capital L.P. ("Casimir"), who acted as lead agent on the offering, received a finder's fee equal to 6% of the gross proceeds of the financing as well as non-transferable broker warrants entitling Casimir to subscribe, at a price of $6.58 per share, to such a number of common shares of Virginia that are equal to 6% of the number of flow-through shares that have been issued as a result of this financing. The warrants have a term of 24 months from closing.

Proceeds from the offering will be used to fund exploration work on Virginia's numerous projects.

About Virginia

Virginia is among the most active mining exploration companies in Quebec with a working capital of $40.9 million as at August 31, 2009, and 29,616,362 shares issued and outstanding as at November 30, 2009. Virginia trades on the Toronto Stock Exchange (TSX) under the ticker symbol VGQ. Virginia concentrates its activities on its numerous properties that are spread over the vast, unexplored regions of northern Quebec.

This press release, required by applicable Canadian laws, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in Virginia's periodic reports filed with the security commissions of British Columbia, Alberta, Ontario and Quebec, and in the annual report on Form 40-F filed with the U.S. Securities and Exchange Commission. Virginia undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

Contact Information

  • Virginia Mines Inc.
    Andre Gaumond
    President
    800-476-1853 or 418-694-9832
    418-694-9120 (FAX)
    or
    Virginia Mines Inc.
    Paul Archer
    V-P Exploration
    800-476-1853 or 418-694-9832
    418-694-9120 (FAX)
    or
    Virginia Mines Inc.
    Amelie Laliberte
    Investor Relations
    800-476-1853 or 418-694-9832
    418-694-9120 (FAX)
    www.virginia.qc.ca
    mines@virginia.qc.ca