VMS Ventures Inc.
TSX VENTURE : VMS

VMS Ventures Inc.

June 05, 2007 09:30 ET

VMS Ventures Announces $2,000,000 Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2007) - VMS Ventures Inc. (TSX VENTURE:VMS) (the "Company") is pleased to announce that it has negotiated a brokered private placement for gross proceeds of up to $2,000,000, on a best efforts basis, with Evergreen Capital Partners Inc. of Toronto, Canada (the "Agents"). The financing will combine the issuance of units ("Units") at $0.22 and flow-through common shares ("FT Shares") at $0.25 per FT share in the capital stock of the Company. Each Unit will comprise one non-flow through common share (a "Share") and one half of one share purchase warrant (a "Warrant"), and each Warrant will entitle the holder to purchase one additional non-flow through common share at the price of $0.34 for a period of 18 months following the closing.

The Company has also granted to the Agents an over-allotment option (the "Over-Allotment Option") to purchase up to 50% of the number of Units and FT Shares issued on closing at the issue price, subject to the right of the Company to accept or reject any proposed subscribers under the over-allotment option.

The Agents will receive a cash commission on the sale of the Units and FT Shares representing 8% of the gross proceeds. The Company will also issue share purchase warrants to the Agents on closing (the "Agents' Warrants") representing 10% of the number of Units and Flow-Through Shares sold under the Offering. Each Agent Warrant will entitle the holder thereof to purchase one unit of securities of the Company (an "Agent's Unit") at the Unit Issue Price for an 18-month period following the closing of the Offering. Each Agent's Unit will be comprised of one common share and one half of a common share purchase warrant.

The proceeds of the sale of the FT shares will be used for the exploration and development of existing Nickel and VMS (Copper-Zinc) projects in Manitoba, Canada, with the proceeds of the sale of the units to be used for property investigation and acquisition costs, general exploration and development activities and to provide working capital to the Company.

The financing is subject to acceptance by the TSX Venture Exchange.

VMS Ventures Inc. is focused on acquiring, exploring and developing copper-zinc properties in the Flin Flon-Snow Lake VMS Belt. The Company also holds the largest package of land considered prospective for nickel-copper mineralization at Lynn Lake, which, historically, is Canada's third largest nickel producing camp. The Company's project portfolio consists of the Snow Lake VMS project, the Lynn Lake Gabbros nickel-copper project, the South Bay nickel-copper-cobalt PGE property, and the Eden Lake Carbonatite Complex, Specialty Metals property. All VMS Ventures Inc. properties are located in the mining friendly province of Manitoba, Canada.

ON BEHALF OF THE BOARD:

Rick Mark, CEO & Chairman

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • VMS Ventures Inc.
    Rick Mark
    CEO & Chairman
    (604) 986-2020 or Toll Free: 1-866-816-0118
    (604) 986-2021 (FAX)
    Website: www.vmsventures.com