Volcanic proposes share consolidation and $375,000 private placement
March 8, 2019 – Vancouver, British Columbia – Volcanic Gold Mines Inc. (TSXV: VG) announces that management has determined that it is in the best interests of the Company and its shareholders to consolidate the issued common shares of the Company on the basis of one new share for every seven existing shares and thereafter complete a non-brokered private placement financing to raise proceeds of up to $375,000. These transactions are intended to put the Company in a position to attract new business opportunities.
The private placement will consist of, on a post-consolidation basis, up to 1,500,000 units at $0.25 per unit. Each unit will consist of one post-consolidation common share and one warrant entitling the holder to purchase one additional post-consolidation common share of the Company at $0.35 for one year from closing. The proceeds of the placement are intended to be used for general working capital purposes, including funding management’s search for prospective projects for the Company.
The completion of the share consolidation and private placement is subject to stock exchange approval. The name of the Company will remain unchanged. The Company’s current issued capital is 45,886,538 common shares. Upon completion of the previously announced debt settlement (see Volcanic news release March 4, 2019), the share consolidation and the private placement, the Company’s issued capital would become an estimated 8,618,420 common shares.
Volcanic brings together an experienced and successful mining, exploration and capital markets team focused on building multi-million ounce gold resources in underexplored countries. Through the strategic acquisition of mineral properties with demonstrated potential for hosting gold resources, and by undertaking effective exploration and drill programs, Volcanic intends to become a leading gold company.
For further information, visit our website at www.volgold.com.
Volcanic Gold Mines Inc.
Simon Ridgway, Executive Chairman
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements and include, without limitation, statements about the Company’s business goals and the proposed share consolidation and private placement. Often, but not always, these forward looking statements can be identified by the use of words such as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “remaining”, “to be”, “periodically”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, the proposed share consolidation and private placement; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulators and available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the proposed share consolidation and private placement will be completed as intended; that the Company’s stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.