District Metals

Volcanic Gold Mines Completes Acquisition of Mandiana Gold Project in Guinea

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 19, 2017) - Volcanic Gold Mines Inc. (formerly, Volcanic Metals Corp.) (the "Company") (TSX VENTURE:VG) is pleased to announce that further to its news releases of November 8, 2016, and January 5, 2017, the Company has acquired all of the issued and outstanding share capital of Sovereign Mines of Africa Ltd. ("Sovereign Mines") from Sovereign Mines of Africa Plc ("SMA"). Sovereign Mines holds a 75% interest in a series of exploration permits located in Guinea commonly referred to as the Mandiana Project. The remaining interest in the Mandiana Project is held by Soguipami, a government-owned business entity in Guinea formed to conduct mineral exploration projects.

In consideration for the outstanding share capital of Sovereign Mines, and the assignment of the right to purchase Sovereign Mines by Radius Gold Inc. ("Radius"), the Company issued 2,502,489 common shares to SMA and 1,263,883 common shares to Radius. The Company also reimbursed Radius for certain expenses incurred in development of the transaction, and granted Radius certain rights to participate in future equity financings completed by the Company. Each of SMA, Sovereign Mines and Radius are at arm's length to the Company.

In connection with the acquisition of Sovereign Mines, the Company has appointed Jeremy Crozier as President and a Director of the Company. Michael Iverson will remain as Chief Executive Officer of the Company. Mr. Crozier holds B.Sc. and M.Sc. degrees in geology and has over 20 years of exploration experience gained across a variety of project operations in North America, Africa (including Guinea) and Europe. He has extensive experience in the management of complex projects in remote environments, in discovery and resource definition, in the identification and appraisal of new projects, and in the negotiation of transactions with property vendors and joint venture partners.

The Company also announces that it has changed its name to "Volcanic Gold Mines Inc." and will be commencing trading under its new name on the TSX Venture Exchange, under the symbol "VG" at market open on Thursday, January 19, 2017.

GET DAILY NEWS FLOW

Sign Up To Receive All Morning
News To Your Email Inbox

Please review our Disclaimer and Privacy Policy before subscribing.

DISTRICT METALS (TSX.V: DMX)

District Metals

District Metals is led by industry professionals with a track record of success in the mining industry. The company's Viken property covers 100% of the Viken deposit, which is amongst the largest deposits by total historic mineral... LEARN MORE