Virgin Metals Inc.
TSX VENTURE : VGM

Virgin Metals Inc.

December 06, 2010 09:24 ET

Virgin Metals Inc.: Completes Fully-Subscribed Rights Offering

TORONTO, ONTARIO--(Marketwire - Dec. 6, 2010) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Virgin Metals Inc. (the "Company" or "Virgin") (TSX VENTURE:VGM) is pleased to announce the completion of its previously announced rights offering for aggregate gross proceeds of $687,826. The rights offering was fully subscribed with a total of 18,881,781 rights being exercised for 2,360,219 units and 1,078,910 units being issued pursuant to the additional subscription privilege.

"We are extremely pleased by the success of this offering and the confidence our shareholders have demonstrated through their support of this financing" said Chris Frostad, President and Chief Executive Officer. "This transaction marks the completion of an important restructuring phase for Virgin and firmly positions the Company for the successful completion of its stated mandates".

Each unit was issued at a price of $0.20 and was comprised of one common share and one common share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder thereof to acquire one common share at a price of $0.25 per common share until expiry two years after the date that the Warrant is issued.

The Company now has 32,554,664 Common Shares issued and outstanding.

About the Company

Virgin 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.

Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information" within the meaning of Canadian securities law. Other than statements of historical fact, all statements are "forward-looking statements", including the Record Date, use of proceeds, size and pricing of the Offerings that involve various known and unknown risk and uncertainties and other factors, such as market conditions. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "forward-looking statements". Except as otherwise required by applicable securities statutes or regulation, Virgin expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

Neither the Investment Industry Regulatory Organization of Canada nor the TSXV accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Virgin Metals Inc.
    Chris Frostad
    President and Chief Executive Officer
    (416) 603-8368
    www.virginmetals.com