TORONTO, Aug. 25 /CNW/ - VenCan Gold Corporation (TSX-V: VCG) ("Vencan")
announces the closing of a non-brokered financing of 13,500,000 flow through
units ("FT Units") at $0.05 per unit for gross proceeds of $675,000. Each FT
Unit consisted of one common share of VenCan issued as a "flow-through share"
and one-half of one non-flow-through common share purchase warrant. Each
common share purchase warrant entitles the holder thereof to purchase one
common share of the capital stock of VenCan that is not a "flow-through share"
at an exercise price of $0.12 per common share for a period of eighteen months
after closing. In conjunction with the financing, finders received fees of
$16,250 and broker options to acquire 457,100 Units exercisable at $0.05 per
Unit for a period of eighteen months after closing.
MineralFields Group subscribed 6,530,000 flow through units and Stone
Asset Management subscribed for 5,000,000 FT Units. The balance of 1,970,000
FT Units were acquired by insiders.
All securities issued under the private placement are subject to a hold
period of four months plus a day from closing.
Proceeds of the financing will be used for exploration, property
acquisition and general working capital.
"We are very pleased to be entering into this relationship with
MineralFields Group", said Kirk McKinnon, President and CEO of VenCan. "This
is an important milestone in the growth of VenCan and we look forward to
working with MineralFields Group as we develop our holdings in the Atikokan
and Timmins regions."
VenCan Gold Corporation's current exploration focus is Ontario where it
has three properties - Abitibi West, Moffatt and Mt. Logano. VenCan Gold
maintains its website http://www.vencan.com with corporate information,
reports and images of its exploration projects.
About MineralFields, Pathway and First Canadian Securities (R)
MineralFields Group (a division of Pathway Asset Management) is a
Toronto-based mining fund with significant assets under administration that
offers its tax-advantaged super flow-through limited partnerships to investors
throughout Canada during most of the calendar year, as well as hard-dollar
resource limited partnerships to investors throughout the world. Pathway Asset
Management also specializes in the manufacturing and distribution of
structured products and mutual funds. Information about MineralFields Group is
available at www.mineralfields.com. First Canadian Securities(R), a division
of Limited Market Dealer Inc., is active in leading resource financings (both
flow-through and hard dollar PIPE financings) on competitive, effective and
service-friendly terms, with investors both within, and outside of
The Board of Directors of the Company granted 1,365,000 stock options to
directors, officers and consultants of the Company under the terms of the
incentive stock option plan of the Company filed with the TSX Venture Exchange
and approved by shareholders at the last annual general meeting of
shareholders of the Company held on January 17, 2008. The options are
exercisable at a price of $0.10 per share for a period of four years and are
subject to a four-month hold period from the date of the issuance thereof.
WARNING: The statements made in this news release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially from
expectations and projections set out herein. The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this news release.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This news release
may contain forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs, geological
interpretations, receipt of property titles, potential mineral recovery
processes, etc. Forward-looking statements address future events and
conditions and therefore, involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such
For further information:
For further information: Brent Nykoliation, Director of Business
Development, Ph: (416) 364-4986, email@example.com; Richard
Schler, Vice President & CFO, Ph: (416) 364-4986, firstname.lastname@example.org