Vangold Closes Private Placement for $2,684,299
VANGOLD RESOURCES LTD. TSX-V:VAN
NEWS RELEASE
VANGOLD CLOSES PRIVATE PLACEMENT FOR $2,684,299
November 17, 2010 – Vancouver, BC – Further to its news release of September 10, 2010 Vangold Resources Ltd. ("Vangold" or the "Company") is pleased to announce that it has closed its non-brokered private placement, issuing 12,201,362 units at a price of $0.22 per unit for gross proceeds of $2,684,299.
Each unit consisted of a common share and a non-transferable warrant exercisable at a price of $0.25 per share for 24 months. The units are subject to a hold period expiring March 18, 2011. The Company paid aggregate finder's fees of $87,500 in cash.
The proceeds of the private placement will be used to fund the Company's programs on its three advanced Gold properties located in Papua New Guinea, where the crews have mobilized equipment and established the camp and initiated drilling at Mt Penck, as well Bulldozer and Trenching at Fergusson and commencing gridding and extensive soil sampling at Allemata and for general working capital.
The Company also reports, on behalf of Societe Generale Private Banking ("SGPB") of Lausanne, Switzerland, that SGPB acquired (the "Acquisition") ownership and control over 5,681,818 units (the "Acquired Securities") pursuant to the private placement. Prior to the Acquisition, SGPB had ownership and control over no securities of the Company.
After the Acquisition, SGPB had ownership and control over 5,681,818 common shares and 5,681,818 warrants of the Company, which common shares represented 9.46% of the issued and outstanding common shares of the Company immediately after the private placement. Assuming SGPB's exercise of its warrants, SGPB would have had ownership and control over 11,363,636 common shares of the Company or 17.29% of the 65,731,814 issued and outstanding common shares of the Company immediately after the private placement. The Company has been advised that are no joint actors.
The Company has been advised that SGPB effected the Acquisition for investment purposes, and that SGPB has no present intention to acquire further securities of the Company, although SGPB may in the future acquire securities of the Company through the exercise of the warrants or participation in further financings, or through acquisitions or dispositions carried out in the market, privately or otherwise, as circumstances or market conditions warrant.
The Company has advised SGPB to file an early warning report with the applicable securities regulators, which when filed will be available under the Company's SEDAR profile at www.sedar.com. The issuance of this news release is not an admission that an entity named in the news release owns or controls any described securities or is a joint actor with another named entity.
VANGOLD RESOURCES LTD. Page 2 of 2
To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca or contact Dal Brynelsen at 604-684-1974 or by email [email protected].
On Behalf of the Board of
VANGOLD RESOURCES LTD.
"Dal Brynelsen"
Dal Brynelsen, President and CEO
Disclaimer for Forward-Looking Information
Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.
Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms, and all necessary regulatory approvals and shareholder approval will be obtained, none of which are assured and are subject to a number of other risks and uncertainties.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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