/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
ROUYN-NORANDA, QC, Jan. 7, 2021 /CNW Telbec/ - Visible Gold Mines
Inc. (TSXV: VGD) (Frankfurt:
3V41) (OTCQX: VGMIF) announces that it will effect
a private placement of up to 1,500,000 units at a price of
$0.35 per unit, for gross proceeds to
Visible Gold Mines of up to $525,000.
Each of the units will be comprised of one common share of
Visible Gold Mines and one common share purchase warrant; each
warrant will entitle its holder to acquire one additional common
share of Visible Gold Mines at a price of $0.50 for a period of 24 months from the closing
date of the private placement.
Closing of the private placement is expected to take place
within the next week and is subject to approval by the TSX Venture
Exchange.
It is expected that a director and officer of Visible Gold Mines
(the "Officer") will purchase 500,000 common shares to be issued at
$0.35 per share for total
consideration of $175,000. It is also
expected that another insider of Visible Gold Mines, being a person
holding, directly or indirectly, on a partially-diluted basis, more
than 10% of the issued and outstanding common shares of Visible
Gold Mines (together with the officer, the "Insiders"), will
purchase 500,000 common shares to be issued at $0.35 per share for total consideration of
$175,000. The issuance of shares to
the Insiders will constitute related party transactions but will be
exempt from the formal valuation and minority approval requirements
of Multilateral Instrument 61-101 - Protection of Minority
Security Holders in Special Transactions as the fair market
value of the shares to be issued to the Insiders does not exceed
25% of Visible Gold Mines' market capitalization. Visible Gold
Mines does not expect to file a material change report with respect
to the participation of the Insiders at least 21 days prior to the
expected closing date of the private placement as the Insiders'
participation was only recently determined and closing of the
private placement is expected to take place shortly.
Visible Gold Mines will use the proceeds from this private
placement for exploration on certain of its properties in Québec
and for working capital purposes.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities described
herein, and these securities will not be offered or sold in any
jurisdiction in which their offer or sale would be unlawful. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "1933
Act"), or any state securities laws of the United States.
Accordingly, these securities will not be offered or sold to
persons within the United States
unless an exemption from the registration requirements of the 1933
Act and applicable state securities laws is available.
Forward-Looking Statements
This news release contains statements that may constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking information may
include, among others, statements regarding the future plans,
costs, objectives or performance of Visible Gold Mines, or the
assumptions underlying any of the foregoing. In this news release,
words such as "may", "would", "could", "will", "likely", "believe",
"expect", "anticipate", "intend", "plan", "estimate" and similar
words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should not
be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether, or the times at
or by which, such future performance will be achieved. No assurance
can be given that any events anticipated by the forward-looking
information will transpire or occur, including the closing of the
private placement or the amount to be raised on the private
placement. Forward-looking information is based on information
available at the time and/or management's good-faith belief with
respect to future events and are subject to known or unknown risks,
uncertainties, assumptions and other unpredictable factors, many of
which are beyond Visible Gold Mines' control. These risks,
uncertainties and assumptions include, but are not limited to,
those described under "Risk Factors" in the management's discussion
and analysis of Visible Gold Mines for the fiscal year ended
July 31, 2020 and under "Financial
Instrument Risks" in Visible Gold Mines' Annual Report for the
fiscal year ended July 31, 2020,
copies of which is available on SEDAR at www.sedar.com, and could
cause actual events or results to differ materially from those
projected in any forward-looking statements. Visible Gold Mines
does not intend, nor does Visible Gold Mines undertake any
obligation, to update or revise any forward-looking information
contained in this news release to reflect subsequent information,
events or circumstances or otherwise, except if required by
applicable laws.
About Visible Gold Mines
Visible Gold Mines is a resource company focused on acquiring
and exploring precious metals in northwestern Québec, considered
one of the world's best jurisdictions for mining and exploration.
Visible Gold Mines has 31,064,539 common shares outstanding.
Neither the 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 the release.
SOURCE Visible Gold Mines Inc.