VANCOUVER, BC--(Marketwired - February 15, 2017) - Vanity Capital Inc. (TSX VENTURE: VYC) ("Vanity" or the "Company") is pleased to announce it has entered into a property agreement with Messrs. Luc Gagnon and Daniel Darrah (the "Vendors") to acquire 100% of their interest in nine claims for sixty-six claim units covering approximately 4,400 acres located in the Phillips Township, Kenora District, Ontario, north of the NewGold's Rainy River Gold Deposit (the "Agreement"). The claims cover what was formerly known as the Combined Gold Prospect which covered a historical resource of 240,000 tons grading 0.30 o.p.t. in gold. These reserve estimates are historical in nature, have not been verified by Vanity or its qualified person, and should not be relied upon.
Under the terms of the Agreement Vanity is required to pay the Vendors $30,000 on acceptance of the transaction by the TSX Venture Exchange. On the first, second and third anniversary of the TSX Venture Exchange acceptance of the Agreement Vanity is required to pay the Vendor's $30,000 and 100,000 common shares in Vanity. On the fourth anniversary of the TSX Venture Exchange acceptance of the Agreement Vanity is required to pay the Vendor's $30,000 and 200,000 common shares in Vanity.
A 1% Net Smelter Return is to be retained by the Vendors. Vanity, at its option, may buy 100% of the Net Smelter Return from the Vendors for the sum of $1,000,000.
The Agreement is subject to the parties obtaining the approval of the TSX Venture Exchange.
Messrs. Gagnon and Darrah are arms-length parties to Vanity. No finder's fee will be paid in connection with entering into the Agreement.
Vanity also has staked seven additional claims (for another 69 claim units) to tie up the surrounding area which covers another three gold prospects along a portion of the Cameron Lake-Pipestone volcanic belt.
Vanity now controls 135 claim units for roughly 5400 acres in geological regime similar to the Rainy River and Cameron Lake deposits. It expects to carry-out a field exploration program throughout the summer of 2017 centered on the high-grade gold mineralization found at the Combined Gold Prospect.
Vanity has completed a non-brokered private placement of 1,000,000 Units at a price of $0.50 per Unit for gross proceeds of CDN $500,000 (the "Private Placement"). Each Unit will consist of one common share and one warrant to purchase one common share (the "Warrant") of Vanity. Each warrant is exercisable into one common share of Vanity at an exercise price of $0.60 per common share for a period of twenty-four months following the closing date of the Private Placement. The Warrants contain an acceleration provision (the "Acceleration Provision") that states: "If the volume weighted average closing price of the common shares on the TSX Venture Exchange is $1.20 or more for 21 consecutive trading days at any time subsequent to the expiry of six months from the date of issuance of the Warrants, then the Issuer will earn the right, by providing notice (the "Acceleration Notice") to the Warrant holder(s), to accelerate the Expiry Date of the Warrants to that date which is 30 days from the date of the Acceleration Notice."
Proceeds from the Private Placement will be used for general working capital. The completion of the Private Placement is subject to regulatory approval, as well as approval from the TSX Venture Exchange.
Extension of Outstanding Warrants
Vanity has requested the TSX Venture Exchange approve a two-year extension of the exercise term of 500,000 warrants it issued in a private placement in March 2015. Each warrant was deemed exercisable into one common share at an exercise price of $0.60 per share for a period of twenty-four months following the closing date of the private placement. No warrants issued in the private placement have been exercised and the exercise term is coming to a close on March 13, 2017.
Vanity is a Vancouver junior exploration company. It is Vanity's main mineral exploration property is Porcupine Property located in the Duparquet Township area of Quebec under option from IAMGOLD. The Porcupine Property consists of ten (10) contiguous patented claims covering approximately 153 hectares. Vanity is reviewing other potential property acquisitions and opportunities.
On behalf of the Board of Directors of
VANITY CAPITAL INC.
Nick Segounis, Chairman
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.