Virginia Energy Completes Expanded Financing
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/28/13 -- Virginia
Energy Resources Inc. (TSX VENTURE:VUI)(OTCQX:VEGYF) ("Virginia
Energy" or the "Company") is pleased to announce that it has
completed the non-brokered private placement financing announced in a
news release dated December 28, 2012. As a result, Virginia Energy
expects to issue 24,079,856 common shares for consideration of gross
proceeds of $6,398,800 in cash plus 21,851,411 common shares of
Energy Fuels Inc. (TSX:EFR) for a total value of $10,113,540. In
addition, Graham Moylan, Chief Financial Officer of Energy Fuels,
will be appointed as a director of the Company, subject to approval
of the TSX Venture Exchange.
Common Shares issued under the Offering will be subject to a hold
period of four months and one day from the closing date of the
Offering. In accordance with regulations of the TSX Venture Exchange,
finder's fees may be payable to accredited agents on that portion of
the Offering from purchasers identified by such finder, including the
subscription by Energy Fuels. Funds from the Offering will be used
for general working capital.
Virginia Energy will immediately repay its outstanding bridge loan
facility of $750,000 with Sprott Resource Lending Partnership.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, or applicable state securities
laws, and may not be offered or sold in the United States absent
registration or an exemption from such registration requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Virginia Energy Resources Inc.
Virginia Energy Resources Inc. is a uranium development and
exploration company. The company holds a 100% stake in the advanced
stage Coles Hill uranium project located in south central Virginia,
USA. Additionally, the company operates a uranium exploration program
in the Otish Basin of Quebec, Canada.
On Behalf of the Board of Directors of VIRGINIA ENERGY RESOURCES INC.
Walter Coles Sr., President & CEO
Cautionary Note Regarding Forward-Looking Statements and Information
Certain of the statements and information in this press release
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian securities laws. Forward-looking information includes, but
is not limited to, statements relating to the plans for completion of
the Offering. Forward-looking statements and information generally
express predictions, expectations, beliefs, plans, projections, or
assumptions of future events or performance, do not constitute
historical fact and are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in such statements, including,
without limitation: the risk that the Offering will not be approved
by the Toronto Stock Exchange or TSX Venture Exchange; risks and
uncertainties related to the full Offering not being completed in the
event that there are not sufficient subscribers or the conditions
thereto are not satisfied, including the acceptance by the Toronto
Stock Exchange or the TSX Venture Exchange. Forward-looking
statements and information contained in this release are based on the
beliefs, estimates, and opinions of management on the date the
statements are made. There can be no assurance that such statements
or information will prove accurate. Actual results may differ
materially from those anticipated or projected. Virginia Energy and
Energy Fuels expressly disclaim any intention or obligation to update
or revise any forward-looking statements and information whether as a
result of new information, future events or otherwise, except as
otherwise required by applicable securities legislation. No
production decision with respect to the Coles Hill project has been
made nor will a production decision be made until Virginia Energy has
completed a feasibility study.
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 release.
Virginia Energy Resources Inc.
Walter Coles, Jr.
Executive Vice President
Virginia Energy Resources Inc.
Investor Relations, Manager
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