Mr. James Anderson reports
VANGOLD MINING CLOSES $3,690,520 FIRST TRANCHE OF PRIVATE PLACEMENT
Vangold Mining Corp. has closed the first tranche of its non-brokered private placement of up to 24.5 million units at a price of 15.5 cents per unit for gross proceeds of $3,797,500 announced on July 21 and July 22, 2020. The company has issued a total 23,809,807 units for gross proceeds of $3,690,520, with each unit consisting of one common share of the company and one-half of a common share purchase warrant. Each warrant entitles the holder to purchase an additional share at a price of 25 cents for a period of two years, subject to acceleration in certain events.
The company anticipates closing a second and final tranche of the financing on or about Aug. 11, 2020, which may include an increase in the overall financing to 25,645,000 units for gross proceeds of up to $3,975,000 based on demand.
All securities issued in connection with the first tranche of the financing are subject to a four-month hold period expiring Dec. 6, 2020, and the company has paid certain finder's fees in cash, shares and/or warrants in accordance with the policies of the TSX Venture Exchange.
Work to clear the El Pinguico shaft and enter into and explore the underground workings of the mine as disclosed in the company's news release of July 21, 2020, has begun and further details on the progress of this work will be forthcoming in future news releases.
The El Pinguico project
El Pinguico is a high-grade gold and silver deposit that was mined from the early 1890s until 1913. Toward the end of that period it was mined exclusively by The Pinguico Mines Company of New York, whose shares traded on the Boston and New York stock exchanges. The mining was done principally from the El Pinguico and El Carmen veins, which are thought to be splays off the Mother vein, or Veta Madre.
The Veta Madre is associated with a megafault that outcrops for 25 kilometres and is the most important source of precious metal mineralization in the region. The Veta Madre may cross Vangold's property at depth, underneath the high-grade El Pinguico and El Carmen veins. Very limited drilling has been done on the property and no drilling has attempted to encounter the Veta Madre at depth.
Hernan Dorado Smith, a director of Vangold and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.
About Vangold Mining Corp.
Vangold Mining is an exploration and development company engaged in reactivating high-grade past-producing silver and gold mines near the city of Guanajuato, Mexico. The company's El Pinguico project is a significant past producer of both silver and gold located just seven kilometres south of the city. The company remains focused on the near-term potential for development and monetization of its surface and underground stockpiles of mineralized material at El Pinguico, and in delineating silver and gold resources through underground and surface drilling on projects located in this historic mining camp.
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