Virgin Metals Inc.
TSX VENTURE : VGM

Virgin Metals Inc.

July 05, 2013 12:45 ET

Virgin Metals Inc.: Closes Final Tranche of a $604,732 Private Placement

TORONTO, ONTARIO--(Marketwired - July 5, 2013) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Virgin Metals Inc. (the "Company" or "Virgin Metals") (TSX VENTURE:VGM) is pleased to announce that it has closed, subject to TSX Venture Exchange approval, the final tranche of a non-brokered private placement (the "Private Placement"). The gross proceeds of the final tranche were $125,150.

The entire Private Placement consisted of 8,063,098 units (each, a "Unit") at a price of $0.075 per Unit. Each Unit is comprised of one common share (each, a "Common Share") and one Common Share purchase warrant of the Company. (each, a "Warrant") Each Warrant will entitle the holder to purchase one Common Share for a period of 24 months following the closing date of the Private Placement (the "Closing Date") at a price of $0.10 per Common Share. Total gross proceeds of the Private Placement were $604,732.

A finder's fee of $25,000 was paid in connection with the Private Placement and the Company has granted 333,333 finder's fee units. Insiders participated in the Private Placement purchasing 3,461,098 of the issued Units.

The securities issued under the Private Placement will be subject to a four-month and a day hold period from the Closing Date in accordance with applicable securities legislation.

The net proceeds of the Private Placement will be used to further advance the pre-feasibility report on the Company's Los Verdes property, continue exploration on its additional copper projects as well as for working capital and general administrative purposes.

About Virgin Metals

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 currently the subject of a pre-feasibility study while the other, Cuatro Hermanos, is the focus of ongoing exploration efforts.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Disclosure regarding forward-looking statements

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties, including the intended use of proceeds of the Private Placement, and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change, unless required by law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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