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VMS Ventures Announces $2,000,000 Brokered Private Placement
June 5, 2007
Vancouver, B.C. June 5, 2007. VMS Ventures Inc.
(TSX.V: VMS) (the "Company") is pleased to announce that it has negotiated a
brokered private placement for gross proceeds of up to $2,000,000, on a best
efforts basis, with Evergreen Capital Partners Inc. of Toronto, Canada (the
“Agents”). The financing will combine the issuance of units (“Units”) at $0.22
and flow-through common shares (“FT Shares”) at $0.25 per FT share in the
capital stock of the Company. Each Unit will comprise one non-flow through
common share (a “Share”) and one half of one share purchase warrant (a
“Warrant”), and each Warrant will entitle the holder to purchase one additional
non-flow through common share at the price of $0.34 for a period of 18 months
following the closing.
The Company has also granted to the Agents an over-allotment option (the
“Over-Allotment Option”) to purchase up to 50% of the number of Units and FT
Shares issued on closing at the issue price, subject to the right of the Company
to accept or reject any proposed subscribers under the over-allotment option.
The Agents will receive a cash commission on the sale of the Units and FT Shares
representing 8% of the gross proceeds. The Company will also issue share
purchase warrants to the Agents on closing (the “Agents’ Warrants”) representing
10% of the number of Units and Flow-Through Shares sold under the Offering. Each
Agent Warrant will entitle the holder thereof to purchase one unit of securities
of the Company (an “Agent's Unit") at the Unit Issue Price for an 18-month
period following the closing of the Offering. Each Agent's Unit will be
comprised of one common share and one half of a common share purchase warrant
The proceeds of the sale of the FT shares will be used for the exploration and
development of existing Nickel and VMS (Copper-Zinc) projects in Manitoba,
Canada, with the proceeds of the sale of the units to be used for property
investigation and acquisition costs, general exploration and development
activities and to provide working capital to the Company.
The financing is subject to acceptance by the TSX Venture Exchange.
VMS Ventures Inc. is focused on acquiring, exploring and developing copper-zinc
properties in the Flin Flon-Snow Lake VMS Belt. The Company also holds the
largest package of land considered prospective for nickel-copper mineralization
at Lynn Lake, which, historically, is Canada’s third largest nickel producing
camp. The Company’s project portfolio consists of the Snow Lake VMS project, the
Lynn Lake Gabbros nickel-copper project, the South Bay nickel-copper-cobalt PGE
property, and the Eden Lake Carbonatite Complex, Specialty Metals property. All
VMS Ventures Inc. properties are located in the mining friendly province of
Manitoba, Canada.
ON BEHALF OF THE BOARD:
Rick Mark
CEO & Chairman
The TSX Venture exchange does not accept responsibility for the
adequacy or
accuracy of this release.
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