Veris Gold announces US$ 10 million loan

About this update from Volcanic Gold Mines Inc.

[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, April 12, 2013 /CNW/ - Veris Gold Corp. (TSX: VG) (Frankfurt Xetra Exchange: NG6A) (the \"Company\"), is pleased to announce that the Company has secured financing in the\n form of an eight-month senior unsecured promissory note (the \"Note\") with a principal sum of US$10,000,000 (the \"Principal\"). In connection with the Note, the Company will issue 3,400,000 common\n share purchase warrants (the \"Warrants\"). The Warrants will have an exercise price of US$1.80 per Warrant and\n will expire five years from the date hereof.\n\n\nThe Company intends to use the proceeds to complete development of the\n Starvation Canyon Mine and to start underground development of the\n Saval 4 portal, both located on its Jerritt Canyon property in Nevada.\n Starvation Canyon Mine commenced production on April 6, 2012 at\n approximately 300 tonnes per day; with funds from the Note, additional\n development will be completed to increase production to the targeted\n 600 tonnes per day by the end of June. Saval 4 development is scheduled\n to commence in May 2013 and this zone is expected to deliver an average\n of 300 tons per day in the second half of 2013, bringing the total for\n the SSX mining complex to 1,500 tons per day.  Pre-production\n development is expected to be approximately $1 million.  The increased\n production at Jerritt Canyon from Starvation Canyon and Saval 4 will\n provide additional revenues and cash flow to the Company.\n\n\nThe Note will bear interest at a rate of 9% per annum and will mature\n eight months from the closing date (the \"Maturity Date\"). From and\n after the Maturity Date or at the election of the Lender after an Event\n of Default (as defined in the Note) whether or not the maturity has\n been accelerated, the Note will bear interest at a rate of 1.75% per\n month, and at the option of the Lender, the Principal may be converted\n into common shares of the Company (the \"Conversion Shares\") based on a\n conversion price equal to the greater of (a) CDN$0.75 and (b) the\n Market Price (as defined in the TSX Company Manual) of the Company's\n common shares discounted by 5% per Conversion Share (the \"Conversion\").\n The ability of the Lender to exercise its option to convert the\n Principal into common shares remains subject to TSX approval at the\n time of the Conversion.\n...

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