Mr. Michael Gunning reports
VR CLOSES SECOND TRANCHE OF FINANCINGS FOR PROCEEDS OF $924,000, RECEIVES $200,000 GRANT FROM THE ONTARIO GOVERNMENT, AND MOBILIZES FOR DRILL PROGRAM AT HECLA-KILMER
VR Resources Ltd. has closed two tranches of its previous announced flow-through and hard-dollar financings. A third and final closing is anticipated for the week of Oct. 4, in concert with the planned start-up of the fall drill program at the company's discovery of high-grade REE (rare earth element) mineralization on its Hecla-Kilmer (H-K) property in Northern Ontario. In summary:
Closed the first tranche of its previously announced flow-through private placement, consisting of 3,381,667 units at a price of 18 cents per unit for total gross proceeds of $608,700. The balance of the private placement is confirmed and is anticipated to close as indicated above;
Closed the second tranche of its previously announced hard-dollar private placement, consisting of 1,973,500 units at a price of 16 cents per unit for total gross proceeds of $315,760;
Confirmed an award of $200,000 from the Ontario government in year 2 of its OJEP (Ontario Junior Exploration Program) critical metals grant program.
Mobilization is under way for the fall drill program at the Hecla-Kilmer critical metals discovery in Northern Ontario. Drilling is expected to commence during the week of Oct. 4 and run for approximately four weeks. The objective is to complete additional drill holes into at least two of four areas where high-grade rare earth element mineralization has been intersected at or near surface within the multiphase complex at H-K. The company will also consider completing the first reconnaissance drill hole into its Northway target located approximately 15 kilometres (km) to the northeast of Hecla-Kilmer.
Supporting information on financings
As described in full in previous news releases, the units for both financings consist of one common share and one-half of a common share purchase warrant with each whole warrant entitling the holder to purchase an additional common share at 25 cents for a period of 18 months from the closing date.
In connection with the tranches announced herein, the company paid cash fees totalling $48,875 to certain finders.
The securities that were issued under the financing are subject to a four-month hold period from the date of closing under Canadian securities law.
VR will use the net proceeds of the financing for its mineral exploration business and including active exploration on various mineral properties held in Ontario, Canada, and Nevada, United States.
Stock option allocation
The company has approved the allocation of 1,325,000 incentive stock options at a price of 16 cents and exercisable for a period of five years to various directors, officers and employees of the company and in accordance with the terms of the company's stock option plan.
About VR Resources
VR is an established junior exploration company focused on greenfields opportunities in critical metals, copper and gold. VR is the continuance of four years of active exploration by a Vancouver-based private company. The diverse experience and proven record of its board in early-stage exploration, discovery, and M&A (mergers and acquisitions) is the foundation of VR. The company is well financed for its corporate obligations and mineral exploration plans, focused on underexplored large-footprint mineral systems in the Western United States and Canada. VR owns its properties outright and evaluates new opportunities on an continuing basis, whether by staking or acquisition.
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