(TheNewswire)
June 2, 2023 – TheNewswire - Vancouver, B.C. - VR Resources Ltd . ( TSXV:VRR ) ; ( FSE:5VR ) ; ( OTC:VRRCF ), the(Company ), or (VR) , announces a non-brokeredprivate placement for $800,000 (the “Financing”). The Companyplans to direct the funds immediately into completion of an additionaldrill hole later this month into the large kimberlite breccia complexdiscovered at its Northway property in northern Ontario. This drillhole will enable the Company to increase the amount of drill coreavailable for the initial micro-diamond evaluation of the kimberliteat Northway, to be completed at the SRC laboratory in Saskatoonfollowing completion of the drilling.
The Financing includes one flow through subscriptionand one hard dollar subscription by two institutional investors, bothcurrent core shareholders in VR. The flow-through component willconsist of up to 2,051,282 units (the “FT Units” ) at aprice of $0.195 per FT Unit for gross proceeds of up to $400,000. Each FTUnit consisting of one Flow Through common share ( “Flow-Through Share” ) of the Company and one-half of a common share purchasewarrant ( “Warrant” ), with each whole Warrantentitling the holder to acquire one additional common share at anexercise price of $0.25 per common share for a period of 36months from the closing date ( “Closing Date” ). The hard-dollar componentwill consist of up to 2,222,222 units (the “HD Units” ) at aprice of $0.18 per HD Unit for gross proceeds of up to $400,000. Each HDUnit will consist of one common share of the Company and one commonshare purchase warrant, with each whole Warrant entitling the holderto acquire one additional common share at an exercise price of $0.25 per common share for a period of 36 months from the closing date(“Closing Date”) of the Financing.
The Company may pay a finder’s fee of up to a 6% cashfor subscriptions to the financing.
The Closing Date for the placement is expected to be onor before June 30th, 2023, and is subject to all regulatory approvals,including the approval of the TSX Venture Exchange. The securitiesissued in connection with this Financing will be subject to a holdperiod of four months plus one day from the date of Closing, inaccordance with applicable securities legislation.
Use of Proceeds
VR plans to use the gross proceeds of the Financing formineral exploration in northern Ontario, and for general workingcapital for the Company. More specifically, the Company plans to usethe funds to complete an additional drill hole later this month intothe large kimberlite breccia complex discovered at its Northwayproperty located in northern Ontario (see NR23-10 dated May 18,2023), and thereby take advantage of the drill equipment which remainson site following the recent drill program at the nearby Hecla-Kilmerproperty.
The securities tobe issued hereunder will not been registered under the U.S. SecuritiesAct of 1933, as amended (the “ U.S. Securities Act ”), or any U.S. statesecurities laws, and may not be offered or sold in the “UnitedStates” or to “U.S. persons” (as such terms are defined inRegulation S under the U.S. Securities Act) without registration underthe U.S. Securities Act and all applicable state securities laws orcompliance with an exemption from such registration.
This press releaseshall not constitute an offer to sell or the solicitation of an offerto buy nor shall there be any sale of the securities in any state inwhich such offer, solicitation or sale would be unlawful.
About the Northway Property andProject
The Northway property is located in northern Ontario.It is approximately 12 km northeast of the Company’s REE criticalmetal discovery at its Hecla-Kilmer project. The nearest townis Moosonee located on tidewater at James Bay some 125 kilometres tothe northeast. Kapuskasing is located approximately the same distanceto the southwest, on the Trans-Canada Highway (Provincial HWY 11).
Exploration is based out of a camp at the hydroelectricfacility at Otter Rapids located about 50 km to the southeast ofNorthway. Provincial Highway 634 provides road access to Otter Rapidsfrom Smooth Rock Falls, located at the junction of HWY 634 with theTrans-Canada Highway. The property itself is just 15 km west of theOntario Northern railway (ONR) which provides service to thecommunities on James Bay.
The Northway property consists of64 contiguous claims in a single, 4 x 7 km block 1,315 ha in size. It was expanded to a district-scale project by staking directly 284new claims in 19 additional properties covering magnetic anomaliesnear Northway and proximal to the ONR line, within an area of 50 x 70km overall.
The properties are owned 100% by VR. There are nounderlying payments or interests on the property and no royaltyinterests because the property was staked by VR directly.
Northway is located on provincial crown land innorthern Ontario, with mineral rights administered by the OntarioMinistry of Northern Development, Mines, Natural Resources andForestry (“MNDM”). There are no annual payments, but the MNDMrequires certain annual exploration expenditures and reporting. Theproperty falls within the traditional territories of the Moose Creeand Taykwa Tagamou First Nations.
About VR Resources
VR is an established junior exploration company focusedon unique, greenfield opportunities on large-footprint mineral systemsin the western United States and Canada (TSX.V: VRR; Frankfurt: 5VR;OTCQB: VRRCF). The foundation of VR is the diverse experience andproven track record of its Board in early-stage exploration, discoveryand M&A. The Company is financed for its exploration and corporateobligations. VR owns its properties outright and evaluates newopportunities on an ongoing basis, whether by direct staking oracquisition.
ON BEHALF OF THE BOARD OF DIRECTORS :
“Michael H. Gunning”
_____________________________
Dr. Michael H. Gunning, PhD, PGeo
President & CEO
For general information please use the following:
Website: www.vrr.ca
Email: info@vrr.ca
Contact: Mike Gunning, 604-374-3708; e-mail: mgunning@vrr.ca
Forward Looking Statements
This press release containsforward-looking statements. Forward-looking statements are typicallyidentified by words such as: believe, expect, anticipate, intend,estimate, postulate and similar expressions or are those which, bytheir nature, refer to future events. Forward looking statements inthis release, for example include but are not limited to: the generaluse of proceeds, that the Company will complete the financing; thatthe Company will carry out additional drilling on its Northwayproperty.
Although the Company believes thatthe use of such statements is reasonable, there can be no assurancethat such statements will prove to be accurate, and actual results andfuture events could differ materially from those anticipated in suchstatements. The Company cautions investors that any forward-lookingstatements by the Company are not guarantees of future performance,and that actual results may differ materially from those inforward-looking statements. Trading in the securities of the Companyshould be considered highly speculative.
The Company’s public disclosurefilings can be accessed via www.sedar.com and readers are urged toreview the materials.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in Policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release
This News Releaseis not for distribution to the United States newswire services or fordissemination in the United States. Any failure to comply with thisrestriction may constitute a violation of U.S. Securities Laws.
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