Pursuant to the Offering, Volcanic issued 12,546,500 units of the Company (the 'Units'), including 1,636,500 Units issued in connection with the exercise in full of the over-allotment option granted to the Underwriters (as defined below) in connection with the Offering, at a price of
Pursuant to the Concurrent Private Placement, Volcanic issued 3,117,100 Units to Silvercorp at the Issue Price for aggregate gross proceeds of
Each Unit consists of one common share in the capital of the
In connection with the Offering, the Underwriters received a cash commission of 6.0% of the gross proceeds of the Offering, subject to a reduced cash commission paid on sales to members of the president's list (the 'Presidents
In connection with the Concurrent Private Placement and a portion of the Offering, the Company will pay a finder's fee to
The Company intends to use the net proceeds from the Financing for the exploration and advancement of the Company's principal assets in
Because Silvercorp is a 'related party' to the Company, the Concurrent Private Placement constitutes a 'related party transaction' within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61 101 Protection of Minority Security Holders in Special Transactions ('MI 61 101'). The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61 101 contained in sections 5.5(b) and 5.7(1)(b) of MI 61 101.
The securities offered pursuant to the Offering have not been, and will not be, registered under the
About Volcanic
Volcanic brings together an experienced and successful mining, exploration and capital markets team focused on building multi-million ounce gold and silver resources in underexplored countries. Through the strategic acquisition of mineral properties with demonstrated potential for hosting gold and silver resources, and by undertaking effective exploration and drill programs, Volcanic intends to become a leading gold-silver company.
Cautionary Note Regarding Forward Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements and include, without limitation, statements about the Company's current expectations on future exploration plans, and the expected use of proceeds of the Financing. Often, but not always, these forward looking statements can be identified by the use of words such as 'estimate', 'estimates', 'estimated', 'potential', 'open', 'future', 'assumed', 'projected', 'used', 'detailed', 'has been', 'gain', 'upgraded', 'offset', 'limited', 'contained', 'reflecting', 'containing', 'remaining', 'to be', 'periodically', or statements that events, 'could' or 'should' occur or be achieved and similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, whether exploration on the Company's principal assets in
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the Company's stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.
Contact:
Tel: (604) 801-5432
Fax: (604) 662-8829
Email: info@volgold.com
Web: www.volgold.com
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