Lexam Explorations Inc.: Early Exercise of VG Gold Warrants Increases Ownership to 42%
LEXAM EXPLORATIONS INC. announce it has acquired ownership of 37,500,000 common shares of VG Gold Corp. by exercising 37,500,000 warrants at an exercise price of C$0.15 per warrant for total proceeds to VG Gold of C$5,625,000.
The warrants were acquired pursuant to a private placement, in which Lexam (in two tranches) acquired 37,500,000 units each consisting of one common share and one warrant of VG Gold. The acquisition of the units was pursuant to an agreement disclosed in Lexam’s Early Warning Reports dated July 23, 2009 and September 2, 2009.
Immediately prior to giving effect to exercise of the warrants, Lexam held 37,500,000 common shares or approximately 27% of the issued and outstanding common shares in VG Gold. After giving effect to the exercise of the warrants, Lexam will hold 75,000,000 common shares or approximately 42% of the issued and outstanding common shares in VG Gold.
After exercising the warrants VG Gold will have approximately $8.0 million in cash with no debt. VG Gold intends to use the proceeds to explore its exciting projects in Timmins, Ontario. The company is now fully funded and anticipates having two drills working continuously over the next twelve months.
