Virgin Metals Inc.: Closes First Tranche of a $750,000 Private Placement

Thu Mar 28, 2013 4:30pm EDT

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Marketwire

Virgin Metals Inc.

March 28, 2013 - 04:30:00 PM

Virgin Metals Inc.: Closes First Tranche of a $750,000 Private Placement

TORONTO, ONTARIO--(Marketwire - March 28, 2013) - 

NOT FOR DISSEMINATION IN THE UNITED STATES

Virgin Metals Inc. (the "Company") (TSX VENTURE:VGM) is pleased to announce
that it has closed, subject to TSX Venture Exchange approval, the first
tranche of a non-brokered private placement of 6,394,431 units (each, a
"Unit") at a price of $0.075 per Unit for aggregate gross proceeds of $479,582
(the "Private Placement"). Each Unit is comprised of one common share (each, a
"Common Share") and one Common Share purchase warrant (each, a "Warrant") of
the Company. Each Warrant will entitle the holder to purchase one Common Share
for a period of 24 months following the closing date of the Private Placement
(the "Closing Date") at a price of $0.10 per Common Share.

Participation of insiders in the private placement totaled 33% of the total
amount raised. The securities issued under the Private Placement will be
subject to a four-month and a day hold period from the Closing Date in
accordance with applicable securities legislation. 

A finder's fee of $25,000 was paid in connection with the Private Placement
and the Company has granted 333,333 finder's fee units.

The net proceeds of the Private Placement will be used to further advance the
pre-feasibility report on the Company's Los Verdes property, as well as for
working capital and general administrative purposes. 

About Virgin Metals

Virgin Metals Inc. is a junior exploration and development company; its
projects include two copper-molybdenum porphyry properties in Sonora, northern
Mexico. One of these, Los Verdes, is currently the subject of a
pre-feasibility study while the other, Cuatro Hermanos, is the focus of
ongoing exploration efforts.

The securities offered have not been registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the
United States or to, or for the benefit of U.S. persons except in certain
transactions exempt from the registration requirements of such Act. This news
release shall not constitute an offer to sell nor the solicitation of an offer
to buy nor shall there be any sale of the securities in any state in which
such offer, solicitation or sale would be unlawful. 

Disclosure regarding forward-looking statements

Note: This press release contains projections and forward-looking information
that involve various risks and uncertainties regarding future events. Such
forward-looking information can include without limitation statements based on
current expectations involving a number of risks and uncertainties and are not
guarantees of future performance of the Corporation. These risks and
uncertainties could cause actual results and the Corporation's plans and
objectives to differ materially from those expressed in the forward-looking
information. Actual results and future events could differ materially from
those anticipated in such information. These and all subsequent written and
oral forward-looking information are based on estimates and opinions of
management on the dates they are made and expressly qualified in their
entirety by this notice. The Corporation assumes no obligation to update
forward-looking information should circumstances or management's estimates or
opinions change.

FOR FURTHER INFORMATION PLEASE CONTACT: 
Virgin Metals Inc.
Chris Frostad
(416) 306-0990
www.virginmetals.com




        

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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