Business
Veris Gold Corp. announces subscription receipt financing
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRUBITION TO U.S. NEWSWIRE SERVICE...
About this update from Volcanic Gold Mines Inc.
[{"type":"text","content":"\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRUBITION TO U.S.\n NEWSWIRE SERVICES./ \n\n\nToronto Stock Exchange: VG\n\n\nVANCOUVER, Aug. 30, 2013 /CNW/ - Veris Gold Corp. (\"Veris\" or the \"Company\") (TSX: VG) (OTCQB: YNGFF)\n (Frankfurt Xetra Exchange: NG6A) is pleased to announce it has entered into an engagement letter and\n term sheet (collectively, the \"Engagement Letter\") for a proposed private placement (the \"Offering\") of up to 15,384,615 subscription receipts (the \"Subscription Receipts\"), at a price of $0.52 per Subscription Receipt, for aggregate proceeds\n to the Company of up to $8,000,000. A significant majority shareholder\n of the Company has indicated that it intends to subscribe for\n approximately 15,000,000 Subscription Receipts.\n\n\nEach Subscription Receipt will automatically entitle the holder to\n receive, without payment of additional consideration, one unit of the\n Company (a \"Unit\"), upon receipt of necessary shareholder and TSX approvals of the\n Offering (the \"Escrow Release Conditions\").  Each Unit will consist of one common share in the capital of the\n Company (each, a \"Common Shares\") and one-half of one warrant to purchase one common share (each whole\n warrant, a \"Warrant\"). Each Warrant will have a term of 36 months and an exercise price of\n $0.60.\n\n\nThe gross proceeds of the Offering will be held in escrow pending\n satisfaction of the Escrow Release Conditions.  The Company intends to\n use the net proceeds of the Offering to proceed with its development\n plans for the Jerritt Canyon property and for general working capital\n purposes.\n\n\nSecutor Capital Management Corporation (the \"Agent\"), will act as Agent for the proposed Offering. Pursuant to the\n Engagement Letter, in return for acting as the Company's Agent, the\n Agent will be entitled to compensation in the following form: (a) a\n cash fee equal to 2.5% of the aggregate cash proceeds received from the\n Offering; (b) Subscription Receipts equal to 2.5% of the total number\n of Subscription Receipts sold in the Offering (the \"Agents Units\"); and (c) common share purchase warrants equal to 4.5% of the total\n number of Subscription Receipts issued pursuant to the Offering (the \"Agent Warrants\"). The Agent Warrants will have a term of 36 months and an exercise\n price of $0.65....