Virginia Gold Mines (VIA-T) has a fresh $750,000 in its pocket after completing a private placement of 600,000 units at $1.25 each with SIDEX (Societ d’investissement dans la diversification de l’exploration), a Quebec mining fund.
Each unit comprises one Virginia share plus half a share purchase warrant. One whole warrant allows the holder to buy one Virginia share for $2 for 18 months from closing.
Virginia intends to use the proceeds to fund a second phase of MegaTem work, including follow-up ground geophysics, prospecting and drilling of previously identified MegaTem anomalies. Drilling will take place over the next 18 to 24 months.
Last June, Virginia inked a deal with Noranda (NRD-T) under which the major invested $1.5 million in Virginia at $1.50 per share (nearly three times the prevailing price). The two are targeting volcanogenic massive sulphide deposits along known belts in Quebec.
Noranda’s proprietary MegaTem airborne geophysics can detect conductors up to 250 metres under cover. The first of six surveys to be flown generated more than 50 targets, of which 18 are considered high priority.
Noranda can earn a 55% interest in any potential discovery.
Virginaia has more than $10 million in working capital and remains debt free.
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