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ROUYN-NORANDA, Qc, Nov. 4, 2011 /CNW Telbec/ - Visible Gold Mines Inc. (TSXV: VGD) (Frankfurt: 3V4) announces that it has entered into an engagement letter with Industrial
Alliance Securities Inc. for a best-efforts private placement of
"flow-through" units in a maximum amount of $2.5 million.
Visible Gold Mines will issue a maximum of 8,333,333 "flow-through"
units at a price of $0.30 per unit, for maximum gross proceeds of
$2.5 million. Each unit will be comprised of one "flow-through" common
share and one-half of a common share purchase warrant. Each full
warrant will entitle its holder to acquire one additional common share
of Visible Gold Mines at a price of $0.40 for twelve months from the
date of issuance.
Visible Gold Mines will use the proceeds from the private placement for
exploration on its properties in Québec.
Visible Gold Mines will grant an over-allotment option to Industrial
Alliance Securities, which may be exercised for 30 days following the
closing of the private placement, pursuant to which Industrial Alliance
Securities will have the right to sell additional flow-through units in
a maximum amount equal to 15% of the number of units sold in the
private placement. If the over-allotment option is exercised in full,
Visible Gold Mines will raise gross proceeds of $2,875,000 from the
In connection with the private placement, Visible Gold Mines will pay a
cash commission to Industrial Alliance Securities in an amount equal to
7% of the gross proceeds. Visible Gold Mines will also issue
compensation options to Industrial Alliance Securities, entitling it to
purchase, for a period of 18 months from the date of issuance and at a
price of $0.30 per share, a number of additional common shares equal to
5% of the total number of units sold in the private placement.
The initial closing of the private placement is expected to take place
on or about November 21, 2011. The private placement is subject to
customary closing conditions, including the signing of an agency
agreement between Visible Gold Mines and Industrial Alliance
Securities, and to regulatory approval, including that of the TSX
About Visible Gold Mines
Visible Gold Mines Inc. is a dynamic company aggressively searching for
the next important gold deposit in northwestern Québec, an area
consistently ranked as one of the world's best jurisdictions for mining
and exploration. Visible Gold Mines is in the midst of a $6.5-million,
40,000-metre drill program covering strategic areas in the
Rouyn-Noranda mining region. Visible Gold Mines has no debt and its
current cash liquidity is approximately $2.5 million.
Neither the 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.
For further information:
Martin Dallaire, President and Chief Executive Officer
Telephone: 819-762-0609, Fax: 819-762-0097