VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 31, 2017) - Volcanic Gold Mines Inc. (the "Company") (TSX VENTURE:VG) announces that it proposes, subject to stock exchange approval, to complete a non-brokered private placement financing of up to 12.5 million units at $0.40 per unit, for proceeds of up to $5.0 million. Each unit will consist of one common share and one full warrant, each warrant entitling the holder to purchase one additional common share of the Company at $0.80 for five years from closing. The warrants will be subject to an acceleration provision such that if the closing price of the Company's shares for 10 consecutive trading days is $1.00 or greater, the Company may give notice to the holders of the warrants that the warrants will expire 30 calendar days after receipt of such notice. The Company may pay a finder's fee on a portion of this financing.
The proceeds of the placement are intended to be used for exploration of the recently acquired Mandiana Project located in Guinea, for possible future property acquisitions, and for general working capital purposes.
The securities referred to in this news release have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements of such Act. This news release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
