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ROUYN-NORANDA, QC, Nov. 23, 2011 /CNW Telbec/ - Visible Gold Mines Inc. (TSXV: VGD) (Frankfurt: 3V4) announces closing of its previously-announced private placement by
issuing 9,583,333 "flow-through" units at a price of $0.30 per unit,
for gross proceeds to Visible Gold Mines of approximately $2,875,000.
Visible Gold Mines issued the "flow-through" units to "accredited
investors" in Ontario and Québec.
Each of the 9,583,333 "flow-through" units is comprised of one common
share and one-half of a common share purchase warrant. Each full
warrant entitles its holder to acquire one additional common share of
Visible Gold Mines at a price of $0.40 for twelve months.
Visible Gold Mines will use the proceeds from the issuance of the
"flow-through" units for its exploration program in 2012 on its
properties located in Québec.
Martin Dallaire, President and Chief Executive Officer of Visible Gold
Mines, stated: "We drilled over 30,000 metres so far in 2011 on five
different projects located in the Abitibi region and our objectives for
2012 is to drill approximately 25,000 metres on the same projects to
further advance our properties."
The "flow-through" units were issued on a best-efforts basis through
Industrial Alliance Securities Inc. as agent. As the private placement
was over-subscribed, Industrial Alliance Securities exercised, at the
closing, an over-allotment option granted to it by Visible Gold Mines.
Visible Gold Mines paid Industrial Alliance Securities a cash commission
of $201,250 and issued "broker warrants" to Industrial Alliance
Securities and other registered brokers, entitling them to purchase up
to 479,166 common shares of Visible Gold Mines for a period of eighteen
months at a price of $0.30 per share.
The securities issued by Visible Gold Mines pursuant to the private
placement are subject to a four-month "hold period" ending on March 23,
2012 under applicable securities legislation and, with respect to
certain securities, the policies of the TSX Venture Exchange.
Following the closing of the private placement, there are
57,734,512 common shares of Visible Gold Mines issued and outstanding.
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 to complete 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 $4.1 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