Victory Mountain Ventures Ltd.

Victory Mountain Ventures Ltd.

April 02, 2014 09:00 ET

Victory Mountain Closes First Tranche of Private Placement and Plans Exploration

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 2, 2014) - Victory Mountain Ventures Ltd. (TSX VENTURE:VMV) ("Victory") announces that it has closed the first tranche of the non-brokered private placement previously announced February 18th 2014.

A total of 2,850,000 units will be issued as non flow-through units at a price of $0.05 per unit for total proceeds of $142,500. Each unit will consist of one common share and one half of one share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.10 per share for 18 months from the date of closing.

Shares, warrants and any shares issued upon exercise of the warrants are subject to a hold period of four months expiring August 2, 2014. The proceeds of the private placement will be used for planning and preparation of an exploration program on the Company's frac sand project and general working capital.

The following insiders participated in the private placement: Doug McFaul 200,000 units, Gordon Jang 300,000 units and Patrick Morris 300,000 units.

Finders Fee: Canaccord Genity Corp. - $1,000 cash and 20,000 Broker warrants and Haywood Securities Inc. - $4,000 cash and 80,000 Broker warrants. Each Broker Warrant is convertible into non-flow through units of the Company at an exercise price of $0.05 until expiration on October 1, 2015. Each unit comprises one share and one half of one share purchase warrant Each whole warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.10 per share for 18 months from the date of closing.

The company would also like to announce that it has assembled an experienced geological team to conduct an initial two phase exploration program on its Silica / Frac Sand property in Alberta. Apex Geoscience Ltd, based in Edmonton Alberta, has extensive experience in the Western Canadian Sedimentary Basin (WCSB) including Oil and Gas, sand and gravel, crushed rock aggregate, oil sands and has a solid working knowledge of Alberta Government regulatory policies, including exploration permitting, assessment reporting and ongoing relationships.

Michael Dufresne, Consulting Geologist and President of Apex Geoscience commented: "The initial phase of exploration will revolve around compiling the abundant oil and gas information for the property and constructing a 3D model of potential clean silica-rich sands for certain target areas into a volume estimate for the Pelican Formation over the next couple of months. The second phase of work, which will be field based, could commence as early as May - June and will involve mapping, sampling and either drill testing or trenching in order to progress to a NI 43-101 compliant resource estimate late this year or early next year."

Director Patrick Morris commented: "We are very pleased to have Michael and his team at Apex initiate the first two phases of geological exploration at Ells River. This first timeline of work and expenditures confirms just how quickly and economically, relative to traditional mining exploration, we can reach our first major milestone of a 43-101 compliant resource estimate at Ells River."

The content of this news release and the Company's technical disclosure has been reviewed and approved by Michael B. Dufresne, M. Sc., P. Geol., who is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Victory Mountain Ventures Ltd. (TSX VENTURE:VMV) is a Junior Exploration Company based in Western Canada. The Company has interests in Silica (Frac Sand), Copper, Gold, Silver, Molybdenum and other base metals in Canada.

On Behalf of the Board of Directors


Charles Desjardins, President and Director

"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."

Cautionary note:

This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. The production rate and mine-life projections have been made without support of a feasibility study, there is no certainty the proposed operations will be economically viable. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Contact Information

  • Victory Mountain Ventures Ltd.
    Charles Desjardins
    President and Director