VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 10, 2017) - Volcanic Gold Mines Inc. (the "Company") (TSX VENTURE:VG) is pleased to report that it has closed its previously announced non-brokered private placement financing by issuing 12.5 million units at $0.40 per unit, for proceeds of $5.0 million. Each unit consists 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 are 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.
In connection with this financing, the Company paid finder's fees totaling $220,262 cash and issued a total of 550,655 warrants which have the same terms as described above. The common shares and warrants issued in the placement are subject to a resale restriction until July 10, 2017.
The proceeds of the placement are intended to be used for exploration of the Company's recently acquired Mandiana Project located in Guinea, for possible future property acquisitions, and for general working capital purposes.
About Volcanic
Volcanic brings together a deeply experienced and successful mining, exploration and capital markets team focused on building a multi-million ounce gold resource in the underexplored West African country of Guinea and its neighbouring countries. Through the strategic acquisition of mineral properties with demonstrated potential for hosting gold resources, and by undertaking effective exploration and drill programs, Volcanic looks to become a leading junior gold resource company.
