Anticipates Endeavour Silver Corp. Becoming Largest Shareholder
VanGold Mining Corp (TSX-V:VGLD) is pleased to announce it has closed its non-brokered private placement of units at a price of $0.30 per Unit announced December 23, 2020 and expanded on January 19, 2021, January 25, 2021, and February 17, 2021. The Company has issued a total of 56,500,000 Units for gross proceeds of $16,950,000 with each Unit consisting of one common share of the Company and one half of a common share purchase warrant. Each Warrant entitles the holder to purchase an additional common share of the Company at a price of $0.45 within three years of closing, subject to acceleration in certain events.
The Company would like to thank the over 180 subscribers, large and small, who have participated in this private placement. We welcome them to our adventure of potential mineral discovery and future production of silver and gold in Guanajuato Mexico.
VanGold would especially like to acknowledge the investment and backing of Endeavour Silver Corp., VBS Exchange Pty. Ltd, and renowned precious metals investor Mr. Eric Sprott.
Endeavour Silver Corp. is a mid-tier precious metals company that operates three underground silver-gold mines in Mexico and upon closing of the acquisition of the El Cubo mine and mill announced December 18, 2020, Endeavour will become VanGold’s largest shareholder with approximately 11.3% ownership of the Company. VBS – or ‘The Victor B. Smorgen Group’ – is led by Australian entrepreneur Peter Edwards and is active in the gold mining sector as part of its expansive business empire. VBS now owns approximately 5.5% of VanGold. Mr. Eric Sprott, a well-known and influential leader in the resource investment community has invested $2,000,000 in this private placement and now owns approximately 3.5% of VanGold.
The Company appreciates the strong endorsement from these investors for VanGold’s business plan to source mineralized material from both of the past producing El Pinguico and El Cubo mines for processing at the El Cubo mill.
It should be noted that Directors of the Company also subscribed for 8,494,273 units (or $2,548,282) representing approximately 15% of the Private Placement, with directors now controlling approximately 16.5% of VanGold.
The net proceeds of the Private Placement will be used to, among other things, complete the acquisition and refurbishment of the El Cubo mine and mill near Guanajuato, Mexico, carry out additional exploration and definition drilling at El Cubo and El Pinguico and fund general corporate and working capital expenditures.
All securities issued in connection with the Private Placement are subject to a four month hold period expiring July 10, 2021 and the Company has paid finder’s fees totalling approximately $395,152 cash, 518,139 common shares and finder warrants to purchase up to 1,648,669 shares on the same terms as the Warrants in accordance with the policies of the TSX Venture Exchange.
About VanGold Mining Corp.
VanGold Mining is an exploration and development company engaged in reactivating high-grade past producing silver and gold mines near the city of Guanajuato, Mexico. The Company’s El Pinguico project is a significant past producer of both silver and gold located just 7 kilometers south of the city. The Company remains focused on the near-term potential for development and monetization of its surface and underground stockpiles of mineralized material at El Pinguico, and in delineating silver and gold resources through underground and surface drilling on projects located in this historic mining camp.
Hernan Dorado Smith, a director of VanGold and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.
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