Tuesday, August 11, 2009
Virginia Energy Closes Final Tranche of Private Placement Financing News Release: 09-16
Virginia Energy Resources Inc. (TSX.V: 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
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 new 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 Instru-ment 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.
On Behalf of the Board of Directors
Virginia Energy Resources Inc.
Norm Reynolds, President & CEO
Santoy Resources Ltd. is pleased to announce the closure of their merger
with Virginia Uranium Limited. Our new company will be called Virginia Energy Resources Inc. and will trade under the ticker symbol VAE effective Friday
July 24. We are currently in the process of transitioning Santoy's website
to the newly formed Virginia Energy Resources Inc. website.
The company is focused on discovering and developing high-grade uranium
deposits and on exploration for coal throughout North America. The
company has an experienced management team which is supported by
a veteran Board of Directors who have been directly involved with the
discovery and development of three major gold discoveries in Canada
that have subsequently been put into production (Eskay Creek, Snip and
Brewery Creek mines); of coal and coalbed methane projects in Western
Canada; of producing "green power" projects throughout Canada; of
conventional oil & gas discoveries throughout North and South America;
and of taking uranium discoveries through to feasibility study.
The Company files its continuous disclosure documents on www.sedar.com
and provides a link to SEDAR under the "INVESTORS" tab.