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Virgin Metals Announces Bought Deal $6 Million Private Placement
Virgin Metals Announces Bought Deal $6 Million Private Placement.
About this update from Minera Alamos Inc.
[{"type":"text","content":"\n\n\n\nTSX Venture Exchange\n\n\nSymbol: VGM\n\n\nShares Outstanding: 59,825,130\n\n\nTORONTO, ON, March 27 /CNW Telbec/ - Virgin Metals Inc. (TSX-V: VGM)\n("Virgin Metals") is pleased to announce that it has entered into an agreement\n("Agreement") with PowerOne Capital Markets Limited ("PowerOne") in which\nPowerOne has agreed to purchase, subject to certain conditions and with the\nright to substitute purchasers, a private placement of 12,000,000 equity units\n("Units") at a price of $0.50 per Unit resulting in gross proceeds of\n$6,000,000 to Virgin Metals, prior to consideration of the Over-Allotment\nOption described below (the "Offering"). Each Unit will consist of one common\nshare of Virgin Metals ("Common Share") and one-half of one common share\npurchase warrant ("Warrant"). One whole Warrant will entitle the holder to\nsubscribe for one Common Share at $0.75 at any time until the date that is\n24 months from closing.\n\n\nSprott Asset Management Inc. ("SAM"), or funds controlled or managed by\nSAM, will be purchasing part of the Units in this Offering.\n\n\nThe net proceeds of the Offering will be used to prepare a feasibility\nstudy for Virgin Metals' Los Verdes copper/molybdenum located in Sonora,\nMexico, commence exploration work on the Cuatro Hermanos copper/molybdenum\nlocated in Sonora, Mexico and for general corporate purposes.\n\n\nThe Agreement and the Offering are subject to the receipt of all\nnecessary approvals, including regulatory and stock exchange approvals.\nClosing is expected to occur on or about April 15, 2007 ("Closing").\n\n\nVirgin Metals has agreed to pay PowerOne a commission equal to 6% of the\naggregate gross proceeds and to issue 1,200,000 brokers' warrants to acquire\nUnits ("Brokers' Unit Warrants") representing 10% of the number of Units\nissued under the Offering. One Brokers' Unit Warrant will entitle the holder\nto acquire one Unit for $0.50 at any time until the date that is 24 months\nfrom Closing.\n\n\nVirgin Metals has also granted PowerOne an over-allotment option\n("Over-Allotment Option") to place an additional 4,000,000 Units at $0.50 per\nUnit, which, if exercised in full, would result in additional gross proceeds\nto Virgin Metals of $2,000,000, at any time withi...