Mr. James Anderson reports
VANGOLD MINING CONCLUDES WARRANT ACCELERATION PROGRAM
Vangold Mining Corp. has concluded its warrant acceleration bonus program announced May 27, 2020, and June 12, 2020, for share purchase warrants granted in connection with the company's 2019 non-brokered private placement financing.
In total, 17,159,500 warrants were exercised under the bonus program for 17,159,500 common shares at a price of 10 cents per share for gross proceeds of $1,715,950 of which directors and officers of the company exercised a total of 6.5 million warrants for net proceeds of $650,000 representing approximately 37.9 per cent of the total warrants exercised.
Based on the foregoing, a total of 1,266,055 bonus shares are issuable to eligible holders who exercised their warrants early under the Bonus Program, being one-10th of one share for each warrant exercised or the equivalent to one whole bonus share for every 10 warrants exercised; however, insiders were limited to a maximum of 200,105 bonus shares by TSX Venture Exchange policy.
Chief executive officer James Anderson stated: "We again thank our warrantholders and shareholders for participating in the bonus program. These additional funds will be used to begin the rehabilitation of the El Pinguico shaft on our El Pinguico silver and gold project near Guanajuato, Mexico, as disclosed in the company's news release of June 24, 2020. The company has also began the work of modelling the deposit in preparation for generating drill targets that the company anticipates drilling from underground in the fall."
The El Pinguico project
El Pinguico is a high-grade gold and silver deposit that was mined from the early 1890s until 1913. The mining was done exclusively 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 Mining's property at depth, underneath the high-grade El Pinguico and El Carmen veins, but very limited drilling has been done on the property and no drilling has attempted to encounter the Veta Madre at depth.
Historic stockpiles of mineralized material exist on surface and underground at El Pinguico, which may potentially provide feed to one of several operational mills in the Guanajuato area.
Hernan Dorado, 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 company engaged in the exploration of mineral projects in the Guanajuato region of central Mexico. The company's flagship El Pinguico project is a significant past producer of high-grade gold and silver and is located just seven kilometres south of the city of Guanajuato, Mexico. The company remains focused on the near-term potential for development and monetization of both its surface and underground stockpiles of mineralized material from El Pinguico.
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