Virginia Mines Inc.
TSX : VGQ

Virginia Mines Inc.

February 02, 2012 10:24 ET

Virginia to Complete a $5 M Flow-Through Share Private Placement

QUEBEC CITY, QUEBEC--(Marketwire - Feb. 2, 2012) -

Not for distribution to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities Law.

Virginia Mines Inc. ("Virginia") (TSX:VGQ) announces that it has negotiated a private placement that consists of 326,797 flow-through common shares ("Flow-Through Shares") at a price of $15.30 per share, which represents 69% premium to the last 10 days volume weighted average trading price for gross proceeds of CA$5,000,000. National Bank Financial Inc. ("National Bank") acts as the agent for the offering.

On closing, Virginia has agreed to pay National Bank a fee equal to 6% of the gross proceeds of the financing

The financing is scheduled to close on or before February 22, 2012 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange. The Flow-Through Shares will be subject to a four-month hold period in Canada.

Proceeds from the offering will be used to fund exploration work on Virginia's numerous projects.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

About Virginia

Virginia is among the most active mining exploration companies in Quebec with a working capital of $43.6 million as at November 30, 2011, and 31,523,943 shares issued and outstanding as at January 31, 2012. Virginia trades on the Toronto Stock Exchange (TSX) under the ticker symbol "VGQ". Virginia concentrates its activities on its numerous properties that are spread over the vast unexplored regions of northern Quebec.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in Virginia's periodic reports filed with the security commissions of British Columbia, Alberta, Ontario and Quebec, and in the annual report on Form 40-F filed with the U.S. Securities and Exchange Commission. Virginia undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

Contact Information

  • Virginia Mines Inc.
    Andre Gaumond
    President
    800-476-1853 or 418-694-9832
    418-694-9120 (FAX)

    Virginia Mines Inc.
    Paul Archer
    V-P Exploration
    800-476-1853 or 418-694-9832
    418-694-9120 (FAX)

    Virginia Mines Inc.
    Amelie Laliberte
    Investor Relations
    800-476-1853 or 418-694-9832
    418-694-9120 (FAX)
    www.virginia.qc.ca
    mines@virginia.qc.ca