Virginia Energy Resources Inc.
TSX VENTURE : VAE

Virginia Energy Resources Inc.

December 13, 2010 13:32 ET

Virginia Energy Closes Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 13, 2010) - Virginia Energy Resources Inc. (TSX VENTURE:VAE) (the "Company") closed the previously announced bought deal financing, see news release Nov. 11, 2010, led by Cormark Securities Inc. on behalf of a syndicate of Underwriters including Bayfront Capital Partners, Ltd. and Dundee Securities Corp. (the "Underwriters"). The Company and the Underwriters entered into an agreement (the "Underwriting Agreement") pursuant to which the Underwriters agreed to purchase 12,500,000 common shares of the Company on a bought deal private placement basis at a price of $0.40 per common share.

The Underwriters also had the option, exercisable prior to closing of the offering, to purchase up to an additional 1,875,000 common shares at the issue price under the offering. The Underwriters exercised their option in full resulting in additional gross proceeds of up to $750,000.

Pursuant to the terms of the Underwriting Agreement, the Company paid the Underwriters a cash commission equal to 6.0% of the gross proceeds of the offering and issued non-transferable warrants ("Broker Warrants") to acquire up to that number of common shares as is equal to 6.0% of the aggregate number of common shares issued pursuant to the offering at a price of $0.40 per share exercisable for a period of 24 months following the closing date.

Gross proceeds from the offering totaled $5,750,000. The net proceeds will be used to invest in VA Uranium Holdings Inc., for exploration on the Company's Saskatchewan properties, and for general corporate purposes.

The common shares issued pursuant to the private placement and any shares issued upon exercise of the Brokers' Warrants are subject to a hold period and may not be traded until April 14, 2011, except as permitted by applicable Canadian Securities laws and the TSX Venture Exchange.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or through an exemption from registration.

About Virginia Energy Resources Inc.
Virginia Energy Resources Inc. is a uranium development and exploration company. The Company holds a 29% stake in the advanced stage Coles Hill uranium project in Virginia. Additionally, the Company is pursuing active exploration programs in the Athabasca Basin on its Murphy River and Hatchet River uranium properties, which are held in a 50-50 Joint Venture with Denison Mines Ltd., and its 100% owned uranium properties in the Otish Basin of Quebec. The Company is also a 37% shareholder of Boss Power Corporation. Virginia Energy Resources Inc. trades on the TSX Venture Exchange under the symbol VAE.

On Behalf of the Board of Directors of

VIRGINIA ENERGY RESOURCES INC.

Walter Coles Jr., President & CEO

Neither 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.

Contact Information

  • Virginia Energy Resources Inc.
    Walter Coles, Jr.
    President/CEO
    (604) 669-4799
    or
    Virginia Energy Resources Inc.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    www.virginiaenergyresources.com