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ROUYN-NORANDA, QC, Dec. 24 /CNW Telbec/ - Visible Gold Mines Inc. (VGD:TSXV and 3V4:FRANKFURT) announces that it has completed its previously-announced private
placement by issuing an aggregate of 6,156,250 "flow-through" units at
an issue price of $0.80 per unit to five limited partnerships
associated with MineralFields Group of Toronto, Ontario and to
"accredited investors" in Canada on a prospectus-exempt basis, for
gross proceeds to Visible Gold Mines of $4,925,000.
Each unit is comprised of one common share and one-half of a common
share purchase warrant. Each whole warrant entitles the holder thereof
to acquire one additional common share of Visible Gold Mines at a price
of $1.20 for a period of two years following the closing of the private
placement. In the event that the closing price of Visible Gold Mines'
common shares on the TSX Venture Exchange for any period of 20
consecutive trading days, commencing not less than four months from the
closing date of the private placement, is $1.50 or more, the exercise
period of the warrants will be accelerated from two years to a period
ending 30 days after the last day of the 20 consecutive trading-day
period, unless the warrants would otherwise expire prior thereto.
In connection with the closing of the private placement, Visible Gold
Mines paid finder's fees to Limited Market Dealer Inc. and National
Bank Financial Inc. in an aggregate amount of $286,800, representing 6%
of the gross proceeds raised in the private placement through such
finders. Visible Gold Mines also issued compensation options to Limited
Market Dealer Inc. and National Bank Financial Inc. to purchase up to
an aggregate of 448,124 units of Visible Gold Mines, representing 7.5 %
of the number of units sold in the private placement through such
finders. The compensation options are exercisable at a price of $0.80
per unit for a period of two years following the closing of the private
placement. Each unit will be comprised of one common share of Visible
Gold Mines and one-half of a common share purchase warrant. Each whole
warrant will entitle the holder to purchase one additional common share
of Visible Gold Mines at a price of $1.20 per share for a period of two
years following the closing of the private placement.
The proceeds from the private placement will be used for exploration on
Visible Gold Mines' properties in the province of Québec.
The securities issued pursuant to the private placement are subject to a
four-month "hold period" under applicable securities legislation the
policies of the TSX Venture Exchange.
Following the closing of the private placement, there are 47,351,179
common shares of Visible Gold Mines issued and outstanding.
About Visible Gold Mines Inc.
Visible Gold Mines is a corporation focused on gold in the prolific
Abitibi Gold Belt in Canada.
About MineralFields, Pathway and First Canadian Securities ®
MineralFields Group (a division of Pathway Asset Management), based in
Toronto, Vancouver, Montreal and Calgary, is a mining fund with
significant assets under administration that offers its tax-advantaged
super flow-through limited partnerships to investors throughout Canada
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
(including the Pathway Multi Series Fund Inc. corporate-class mutual
fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (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, and offers investment banking, mergers and acquisitions, and
mining industry consulting, services to resource companies.
MineralFields and Pathway have financed several hundred mining and oil
and gas exploration companies to date through First Canadian Securities
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of the release.
SOURCE Visible Gold Mines Inc.
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