Virginia Mines to acquire four Quebec propertiesVirginia Mines to acquire four Quebec properties
Virginia Mines Inc(C:VGQ)
Shares Issued 30,823,077
Last Close4/18/2011 $9.15
Tuesday April 19 2011 - News Release
Also Arianne Resources Inc (2) (C:DAN)News Release
Mr. Andre Gaumond of Virginia reports
VIRGINIA ACQUIRES RESSOURCES D'ARIANNE'S MAJORITY INTERESTS IN THE JAMES BAY REGION; VIRGINIA ACQUIRES THE CARAT ROYALTY
Virginia Mines Inc. has signed four acquisition agreements on theKomo, Wabamisk, Lac H and Opinaca properties, all located in the JamesBay region of Quebec, as well as the acquisition of the Carat royaltyattached to the Opinaca property.
Komo and Wabamisk Acquisition Agreement
Under this agreement Virginia acquires a 100% participating interest inthe Komo (118 claims) and Wabamisk (45 claims) properties inconsideration of the issuance of 40,000 common shares of Virginia'scapital stock to Ressources D'Arianne Inc. ("D'Arianne"). Lithium OneInc. owns full interests in any potential lithium discovery on four ofthe claims that constitute the Komo property.
Lac H Acquisition Agreement
Under this agreement, Virginia acquires a 100% participating Interest inthe Lac H property (69 claims), which is owned equally by SOQUEM Inc.("SOQUEM") and D'Arianne, in consideration of the issuance of 50,000common shares of Virginia's capital stock (25,000 to SOQUEM and 25,000to D'Arianne). Of the 69 claims that make up the property, 38 aresubject to a 1.5% NSR to Inco Ltd., which can be bought back for$750,000.
Opinaca Acquisition Agreement
Under this agreement, Virginia has the option to acquire a 50%participating interest in the Opinaca property (165 claims) inconsideration of $878,000 in exploration work to be carried out over thenext five years, and the issuance to D'Arianne of 26,330 common sharesof Virginia' capital stock. Of the 165 claims that make up the property,three are subject to a 2% NSR in favour of Les Explorations Carat Inc.("Carat") (the "Carat Royalty").
Buying-Back of the Carat Royalty
Under this agreement, Virginia will buy back the Carat Royalty inconsideration of the issuance to Carat of 15,000 common shares ofVirginia's capital stock. Should Virginia acquire a 50% participatinginterest in the Opinaca property the Carat Royalty will be cancelled.Conversely, Virginia will retain a 2% NSR on three of the claimsconstituting the Opinaca property.
Geology and Mineralization of Properties
The Opinaca, Lac H, Komo, and Wabamisk properties are all located withinthe Achaean, volcano-sedimentary belt of Eastmain. Virginia has beenvery active for several years on its vast Anatacau-Wabamisk property,which is bordered to the east by the Lac H and Opinaca properties and tothe west by the Komo property. Virginia's work on the Anatacau-Wabamiskled to the discovery of numerous gold showings associated with asignificant volcano-sedimentary contact including the Isabelle showing,which returned interesting surface channel results such as 17.86 g/t Auover 3 metres; 11.03 g/t Au over 3 metres; 316.2 g/t Au over 1 metre and46.5 g/t Au over 4 metres in drilling. Many gold showings were alsodiscovered alongside similar volcano sedimentary contacts. The mostsignificant ones, namely the Contact, Chino and Bull zones, are locatedon the Opinaca property about 20 kilometres to the east of the Isabelleshowing. The Contact zone was defined by drilling to a vertical depth of350 metres and yielded several significant intersections including 4.02g/t Au over 3.6 metres, 4.73 g/t Au over 3.1 metres, and 2.13 g/t Auover 3 metres. The Chino zone returned surface values of up to 92.9 g/tAu over 1.4 metres and up to 14.58 g/t Au over 5.4 metres in drilling.It was followed at surface over 60 metres and to a vertical depth of 100metres. The Bull zone yielded a few interesting drill intersectionswith 1.52 g/t Au over 13.6 metres and 1.5 g/t Au over 5.75 metres. Otherless significant gold showings were also discovered on the Lac H andKomo properties.
The agreements concluded on the Opinaca, Lac H, Komo and Wabamiskprojects allow Virginia to acquire a dominant land position in theregion. Many exploration programs are planned for the following years totest the potential of the area.
About SOQUEM
SOQUEM is a wholly-owned subsidiary of Investissement Quebec.Investissement Quebec's mission is to foster the growth of investment inQuebec, thereby contributing to economic development and job creationin every region. The Corporation offers businesses a full range offinancial solutions, including loans, loan guarantees and equityinvestments, to support them at all stages of their development. It isalso responsible for administering tax measures and prospecting forforeign investment.
Last September, the government announced the merger of Societe generalede financement du Quebec and Investissement Quebec, effective sinceApril 1, 2011. The merger pools the two agencies' considerableexpertise, expand the range of solutions available to Quebec businessesand provide greater assistance with everything from start-up toexporting.
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