Virginia Mines Inc.
TSX : VGQ

Virginia Mines Inc.

May 27, 2009 08:07 ET

Virginia to Sell its Dieppe Property to Agnico Eagle Mines

QUEBEC CITY, QUEBEC--(Marketwire - May 27, 2009) - Virginia Mines Inc. ("Virginia") (TSX:VGQ) announces the execution of an agreement with Agnico Eagle Mines Limited ("Agnico Eagle") pursuant to which Agnico Eagle acquires a 100% participating interest in 52 mining claims, located in the Abitibi region of Quebec, for a consideration that consists of the issuance to Virginia of $1 million in shares of Agnico Eagle, to be issued within 10 business days of the effective date of the agreement.

This agreement also includes an additional issuance of $1 million in shares of Agnico Eagle, in case of confirmed indicated resource of 1 million ounces of gold on the property.

The agreement is subject to the approval of regulatory authorities.

The Dieppe property lies within the Casa Berardi fault, which is the host to the Casa Berardi gold deposit.

About Virginia

Virginia is among the most active mining exploration companies in Quebec with a working capital of $38.5 million as at February 28, 2009, and 29,201,776 shares issued and outstanding as at April 30, 2009. 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)
    or
    Virginia Mines Inc.
    Paul Archer
    V-P Exploration
    800-476-1853 or 418-694-9832
    418-694-9120 (FAX)
    or
    Virginia Mines Inc.
    Amelie Laliberte
    Investor Relations
    800-476-1853 or 418-694-9832
    418-694-9120 (FAX)
    mines@virginia.qc.ca
    www.virginia.qc.ca