NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Toronto, ON / May 10, 2016 / Victoria Gold Corp. (TSX.V-VIT) "Victoria" or the "Company" is pleased to announce that it has closed its previously announced non-brokered private placement for gross proceeds of C$24,000,000 (the "Offering"). Electrum Strategic Opportunities Fund L.P. ("Electrum") and Sun Valley Gold LLC ("Sun Valley") were the only subscribers to the Offering. The Offering was closed on the terms outlined in the Company's news release dated April 20, 2016.
All securities issued pursuant to the Offering are subject to a statutory four month hold period expiring September 11, 2016.
The net proceeds of the Offering will be used to continue development of Victoria's Eagle Gold Project in Yukon and for general corporate purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities issued and sold as part of the Offering have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws, and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About the Dublin Gulch Project
Victoria's 100%-owned Dublin Gulch gold property (the "Property") is situated in central Yukon, Canada, approximately 375 kilometers north of the capital city of Whitehorse, and approximately 85 kilometers from the town of Mayo. The Property is accessible by road year-round and is located within Yukon Energy Corporation's electrical grid. The Company has constructed and maintains a 100-person all-season camp at the project site.
The Property covers an area of approximately 555 square kilometers, and is the site of the Company's Eagle Gold Deposit. The Eagle Gold Deposit is expected to be Yukon's next operating gold mine and includes probable reserves of 2.3 million ounces of gold from 92 million tonnes of ore with a grade of 0.78 grams of gold per tonne, as outlined in a National Instrument 43-101 ("NI 43-101") feasibility study. The NI 43-101 mineral resource has been estimated to host 222 million tonnes averaging 0.68 grams of gold per tonne, containing 4.9 million ounces of gold in the "Indicated" category, inclusive of probable reserves, and a further 78 million tonnes averaging 0.60 grams of gold per tonne, containing 1.5 million ounces of gold in the "Inferred" category.
The Olive-Shamrock target lies 2 kilometres from the proposed infrastructure at the Eagle Gold Project, along the Potato Hills Trend. Drilling and surface trench results to date indicate the existence of a near-surface, high-grade potential feed into operations at the Eagle Gold Project (see the Company's news release dated May 5, 2015). Metallurgical testing completed in 2015 has indicated that the high-grade Olive-Shamrock Zone is amenable to heap leach recovery at the same crush size as the feed from the Eagle Gold Deposit (see the Company's news releases dated February 24, 2015 and August 7, 2015).
Olive-Shamrock is defined by a broad gold/arsenic in-soil geochemical anomaly and lies on the intrusive-sediment contact of the Potato Hills Trend (as does the Eagle Gold Deposit) and is punctuated by several historically exploited high-grade sulphide veins. The Olive area was mined on a small scale from shallow shafts and adits in the early 1900's and via placer mining in creeks draining the area. The Olive vein system is located near the top of Olive Gulch and consists of gold-bearing quartz-scorodite-arsenopyrite vein material centralized in a shear zone structure. Further information including a current summary of all of the Olive-Shamrock Zone exploration can be found on the Company's website at www.vitgoldcorp.com
The technical content of this news release has been reviewed and approved by Paul D. Gray, P.Geo., as the Qualified Person.
Cautionary Language and Forward-Looking Statements
Neither the TSX Venture Exchange, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address the expectations with respect to the future exploration drilling, exploration activities, anticipated metal production, internal rate of return, estimated ore grades, commencement of production estimates and projected exploration and capital expenditures (including costs and other estimates upon which such projections are based) and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.
For Further Information Contact:
President & CEO
Victoria Gold Corp.