Vangold Closes First Tranche of Private Placement
VANGOLD RESOURCES LTD. TSX-V:VAN
NEWS RELEASE
VANGOLD CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
May 7th, 2010 – Vancouver, BC - Vangold Resources Ltd. ("Vangold" or the "Company") is pleased to report that it has closed the first tranche of its non-brokered private placement previously announced March 24, 2010. The first tranche consisted of 11,120,000 units at a price of $0.20 per unit for gross proceeds of $2,224,000, each consisting of a common share and a non-transferable warrant exercisable at a price of $0.25 per share for 18 months subject to acceleration on the occurrence of certain events. Please refer to the Company’s news release of March 24, 2010 for further details regarding the offering and related matters. The Company anticipates closing the balance of the offering in one or more additional tranches in due course.
The securities issued pursuant to the first tranche of the private placement will be subject to a four month hold period expiring September 8, 2010. The Company may pay finder's fees in connection with the private placement, subject to compliance with the policies of the Exchange. Completion of the private placement and the payment of any finder's fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The closing of the first tranche of the private placement will permit the Company to immediately commence the planned programs for its Papua New Guinea gold projects, where the crews have initiated line cutting and grids at Fergusson and Mt Penck. Mr. Brynelsen, President and CEO, is currently in Papua New Guinea organizing the 2010 work programs. Mt Penck is Vangold’s flagship gold property in Papua New Guinea.
The Company also reports, on behalf of Kylie Company Limited ("KC"), that KC has acquired 5,000,000 units pursuant to the first tranche of the private placement. Upon completion of the first tranche, KC has ownership and control over an aggregate of 5,000,000 common shares of Vangold representing approximately 10.5% of the then-outstanding shares (assuming exercise of KC's warrants, 10,000,000 common shares of Vangold representing approximately 17.0% of the then-outstanding shares). The Company is not aware of any joint actors.
The Company understands that KC acquired the securities for investment purposes and that KC has no present intention to acquire further securities of the Company, although it may in the future acquire or dispose of securities of the Company through the market, privately or otherwise, as circumstances or market conditions warrant. The Company has advised KC 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.
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].
VANGOLD RESOURCES LTD. Page 2 of 2
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.