VIA: $3.2M Flow Though PPVirginia Gold Mines Inc.: $3,237,500 Flow Through Private Placement
17:00 EDT Tuesday, August 02, 2005
MONTREAL (Business Wire) -- Virginia Gold Mines Inc. ("Virginia") (TSX:VIA)
announces that it has negotiated a private placement financing with four
major Flow through Funds. The financing consists of 350,000 flow-through
common shares at a price of $9.25 per share, which represents a 22.5%
premium to today's closing price (August 2, 2005) for proceeds of $3,237,500.
A finders fee will be paid on this transaction to Wellington West Capital
Markets.
The proceeds from the offering will be used to fund exploration on its
Eleonore project on which Virginia Gold Mines has announced a significant
gold discovery and on other active exploration projects. This financing is
subject to approval by regulatory authorities.
Virginia Gold Mines Inc. is among the most active mining exploration
companies in Quebec with working capital of over $30 million, debt free, and
with approximately 45 million shares issued and outstanding. Virginia's
shares trade on the Toronto Stock Exchange (TSX) under the symbol VIA.
Virginia concentrates its activities on its numerous properties that are spread
over the vast unexplored regions of northern Quebec.
VIRGINIA GOLD MINES INC. (TSX:VIA)
Virginia Gold Mines Inc.
Andre Gaumond
President
(800) 476-1853 / (418) 694-983
Fax: (418) 694-9120
OR
Virginia Gold Mines Inc.
Paul Archer
V.P. Exploration (QP)
(800) 476-1853 / (418) 694-983
Fax: (418) 694-9120
OR
Virginia Gold Mines Inc.
Amelie Laliberte
Investor Relations
(800) 476-1853 / (418) 694-983
Fax: (418) 694-9120
mines@virginia.qc.ca
www.virginia.qc.ca