Virgin Metals Inc.
TSX VENTURE : VGM

Virgin Metals Inc.

March 06, 2014 15:50 ET

Virgin Metals Inc.: Closes First Tranche of a $481,000 Private Placement

TORONTO, ONTARIO--(Marketwired - March 6, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Virgin Metals Inc. (the "Company") (TSX VENTURE:VGM) is pleased to announce that it has closed, subject to TSX Venture Exchange approval, the first tranche of a non-brokered private placement of 7,500,000 common shares (each, a "Common Share") at a price of $0.05 per Common Share for aggregate gross proceeds of $375,000 (the "Private Placement"). Certain subscribers to the Private Placement were non-arm's length parties.

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.

No finder's fees were paid in connection with the Private Placement.

The net proceeds of the Private Placement will be used to fund expenses related to the renegotiation and restructuring of the company's debt, the maintenance of the company's mineral assets in Mexico, as well as for working capital and general administrative purposes.

The Company also announces that it has entered into amended agreements with the remaining Senior Debenture Holders and Promissory Note holders to extend the Maturity Date to May 31, 2014. The outstanding Debenture of $545,000 carries a yield of 8% per annum with interest calculated and payable quarterly in arrears and is convertible into fully paid common shares of the Company at a price equal to $0.30 per common share. The Promissory Notes of $225,000 plus accrued interest carry an interest rate of 20% per annum payable annually.

About Virgin Metals

Virgin Metals is a junior exploration and development company; its projects include the Los Verdes copper-molybdenum porphyry project in Sonora, northern Mexico which is currently the subject of a pre-feasibility study.

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

Note: 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 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.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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