Virginia Energy Resources Inc.
TSX VENTURE : VAE

Virginia Energy Resources Inc.

August 11, 2009 10:07 ET

Virginia Energy Closes Final Tranche of Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 11, 2009) - Virginia Energy Resources Inc. (TSX VENTURE:VAE) is pleased to announce completion of the final tranche of it's previously announced non-brokered private placement financing announced May 14, 2009. Each Unit will comprise one common share at a price of 50 cents per share, and one-half of one share purchase warrant. Each whole warrant is exercisable at 60 cents per share for a five-year period. The warrants will have an acceleration clause whereby if the Company's shares trade at or greater than $2.00 for 10 consecutive days, the remaining exercise period may be reduced, at the election of the Company and upon notice to the warrant holders, to 25 days. A total of 4,155,600 common shares and 2,077,800 warrants were issued under this placement, for a gross consideration of $2,077,800 and will be subject to a hold period of 4 months and 1 day. Finder's fee and commissions will be payable to qualified third party agents.

A portion of this proposed financing will be applied to increasing the Company's equity position in VA Uranium Holdings Inc., which initial transaction was announced in a Company news release dated Dec. 22, 2008 wherein Santoy and a private corporation, Virginia Uranium Ltd. agreed to a business combination by way of a Plan of Arrangement, which closed July 21, 2009. The amalgamated corporation is Virginia Energy Resources Inc.

Virginia Uranium Ltd. owns an interest in the Coles Hill uranium deposit located in southern Virginia. Coles Hill, considered to be one of the largest undeveloped uranium deposits in the United States, had been advanced through to the feasibility stage in 1982 and has now been investigated by 220 drill holes. It has an estimated measured and indicated resource of 119 million pounds of U3O8 (at a cut-off grade of 0.025 per cent U3O8) based on a National Instrument 43-101 technical report on the Coles Hill property prepared for Santoy Resources by Behre Dolbear and Company Ltd., Marshall Miller and Associates Inc., and PAC Geological Consultant Inc. (Dr. Peter Christopher, P.Eng.) dated Feb. 2, 2009, and revised April 29, 2009. This report is available on SEDAR and on Virginia Energy Resources' website (http://www.virginiaenergyresources.com).

On Behalf of the Board of Directors

Virginia Energy Resources Inc.

Norm Reynolds, President & CEO

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Virginia Energy Resources Inc.
    Norm Reynolds
    President
    (604) 669-4799
    or
    Virginia Energy Resources Inc.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    www.virginiaenergyresources.com