VANCOUVER, June 28, 2012 /CNW/ - Victory Resources Corp. (Symbol VR-TSXV, OTCQX:VRCFF ) (the "Company") is pleased to announce that it has entered into an agreement with GEM
Global Yield Fund Limited ("GEM") for a $5.0 million CDN financing
commitment. Funds raised through this facility will be used for the
ongoing drill program and the subsequent engineering work to bring the
Reforma mine to feasibility. Funds will also be used for the
development of the Company's recently optioned Boleo property in
Mexico, the Toni property located near Merritt, B.C., as well as
general working capital.
Victory Resources Corp. will control the timing and maximum amount of
any private placement under this agreement, and has the right, not the
obligation, to drawdown on available funds. As part of the financing
commitment, the Company has agreed to issue 5 million warrants to GEM
in conjunction with each private placement. The warrants will be
exercisable for a period of three years from the closing of each
private placement at an exercise price of $0.72 CDN per share.
"We are very excited to have entered into this agreement with a world
class investment group like GEM. The $5 million facility will assure
that our company has access to capital beyond our current drill
program," said Wally Boguski, president and CEO. "We look forward to
the results of our ongoing drill program on the Reforma mine as well as
the results from the drill program on the tailings pond from the
historic Reforma mine operations."
Global Emerging Markets Limited, www.gemny.com, was founded in 1991. GEM is a $3.4b investment group having completed
305 transactions in 65 countries. The firm is an alternative investment
group that manages a diverse set of investment vehicles across the
world. GEM's funds include: CITIC/GEM Fund; VC Bank/GEM Mena Fund*;
Kinderhook; GEM Global Yield Fund; GEM India Advisors, and GEM Brazil
*GEM exited both its LP and GP stakes in Q1 2010.
About Victory Resources Corporation
The company's main focus is on the Reforma property located at the
common boundary of Sinaloa and Chihuahua States in west central Mexico.
The concessions cover a total area of 7,226 hectares. Victory Resources
will earn a 70% undivided interest in the Reforma property as part of
an option agreement. Formerly owned by Penoles in Mexico, documentation
showed that between the years 1968 to 1980, the Reforma mine processed
1.8 million tonnes grading an average of 91.62 grams per tonne Ag, 1.90
per cent Pb, 7.44 per cent Zn and 0.63 per cent Cu.
The recently optioned Boleo property is situated on the western
foothills of the Sierra Madre Occidental mountain range, at the common
boundary of the northeastern Mexican States of Sinaloa and Chihuahua
and expands the resource potential of Victory with 20,460 hectares of
contiguous property. This area is characterized by a northerly prolific
mineralized belt hosting the multi-million-tonne porphyry copper and
gold deposits of Santo Tomas and Bahuerachi.
The Company has also begun exploration work on the Au-Wen property in
British Columbia, Canada. The Au-Wen property is 100 % owned by Victory
Resources and is located 30 kilometers southeast of Merritt and 8
kilometers east of the historic Aspen Grove mining camp in
south-central British Columbia, Canada. The property is comprised of 91
mineral claims covering an area of 34,200 hectares. The area covered is
up to 39 kilometres long and up to 21 kilometres wide.
On behalf of The Board of Directors of Victory Resources Corporation.
Paul Lee, Director
This news release contains certain forward looking statements which
involve known and unknown risks, delays, and uncertainties not under
the control of Victory Resources Corp. which may cause actual results,
performance or achievements of Victory Resources Corporation to be
materially different from the results, performance or expectation
implied by these forward looking statements. 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 this press release, which has been prepared
SOURCE Victory Resources Corporation
For further information:
contact Corey Safran, Investor Relations, at 609-228-0595, or by email at firstname.lastname@example.org.
Warren P. Baker, III - email@example.com - The Global Emerging Markets Group (GEM)