Virgin Metals Inc.

Virgin Metals Inc.

April 19, 2007 16:58 ET

Virgin Metals Announces Closing of $8 Million Private Placement

TORONTO, ONTARIO--(Marketwire - April 19, 2007) - Virgin Metals Inc. ("Virgin Metals") (TSX VENTURE:VGM) announces that it has completed the previously announced private placement of 16,000,000 equity units ("Units") at a price of $0.50 per Unit resulting in gross proceeds of $8,000,000 to Virgin Metals, which included the exercise of the over-allotment option (the "Financing"). Each Unit consists of one common share of Virgin Metals ("Common Share") and one-half of one common share purchase warrant ("Warrant"). One whole Warrant will entitle the holder to subscribe for one Common Share at $0.75 at any time until April 19, 2009.

Sprott Asset Management Inc. purchased 6,000,000 Units as part of the Financing.

The net proceeds of the Financing will be used to prepare a feasibility study for Virgin Metals' Los Verdes molybdenum/copper located in Sonora, Mexico, commence exploration work on the Cuatro Hermanos copper/molybdenum located in Sonora, Mexico and for general corporate purposes.

PowerOne Capital Markets Limited ("PowerOne") has been paid a commission equal to 6% of the aggregate gross proceeds and has received a broker warrant to acquire up to 1,600,000 Units ("Broker Unit Warrants") representing 10% of the number of Units issued under the Financing. One Broker Unit Warrant will entitle the holder to acquire one Unit for $0.50 at any time until April 19, 2009.

All of the securities issued in connection with the Financing will be subject to a four month hold period from the date of issue.

Virgin Metals is a junior exploration and development company; its projects include two copper/molybdenum porphyry properties in Sonora, northern Mexico. One of these, Los Verdes, is expected to evolve rapidly towards production while the other, Cuatro Hermanos, is expected to be the focus of expanded exploration effort.


This press release includes certain "forward-looking information" within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to timing and extent of exploration programs and the availability of exploration results. As such, forward-looking information addresses future events and conditions and so involves inherent risks and uncertainties, as disclosed under the heading "Risk Factors" and elsewhere in Virgin Metals documents filed from time to time with the Ontario Securities Commission and other regulatory authorities. Actual results could differ significantly from those currently projected as a result of, among those factors, adverse weather, regulatory changes, delays in receiving permits, accidents and delays in completing exploration activities not all of which are in the control of Virgin Metals. The forward-looking information contained herein is Virgin Metal's reasonable estimate today of future events and conditions, but no assurance can be given that such events or conditions will occur.

Shares Outstanding: 76,650,130

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