🕐10.04.12 - 16:27 Uhr
VIRGINIA ENERGY SIGNS DEFINITIVE AGREEMENT TO OPTION HAWK RIDGE
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Re: News Releases - Tuesday, April 10, 2012
Virginia Energy Signs Definitive Agreement to Option Hawk Ridge
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NR: 12-03
Virginia Energy Resources Inc.
(TSX.V: VAE) (OTCQX: VAERF) is pleased
to announce the execution of a definitive agreement to option its Hawk
Ridge copper-nickel-PGM property in Ungava Bay, Quebec to Orient
Venture Capital Inc.
(TSX.V: OVC.H) for $3 million of cash and stock,
as outlined in the Letter of Intent announced by VAE on February 7,
2012.
Hawk Ridge is located 130 km north of Kuujjuak in the Labrador
Trough and includes several deposits with significant past drilling.
The acquisition, when completed, will constitute the "Qualifying
Transaction" of OVC pursuant to the policies of the TSX Venture
Exchange.
The resulting issuer will be re-named Nickel North
Exploration Corp.
Under the terms of the agreement signed on March 29, 2012, OVC can earn
a 100% interest in the Hawk Ridge property, subject to underlying
royalty interests, by making staged payments totaling $2,000,000 in
cash and $1,000,000 in OVC common shares to VAE.
The agreement calls
for an initial payment of $500,000 in cash and $250,000 in OVC common
shares within 5 days of final Exchange approval of OVCs Qualifying
Transaction.
The second payment of $500,000 in cash and $250,000 of OVC
common shares must be paid by December 31, 2012.
The final payment of
$1,000,000 in cash and $500,000 in OVC common shares must be paid by
December 31, 2013.
In addition, OVC may be required to deliver up to $600,000 in OVC
"concurrent financing units" (a unit being valued at $0.20 and
consisting of one share plus one half of a warrant, with warrants
exercisable at $0.40 in year 1 and $0.60 in year 2), in exchange for
the expenses of an airborne geophysical survey to be completed by VAE
in spring 2012.
The final $1,000,000 cash payment would be reduced by
an amount equal to 20% of the cost of the geophysical survey, and VAE
will retain all Quebec tax rebates recoverable from the expenses of the
survey.
The transaction is still subject to a number of remaining conditions,
including, but not limited to, Exchange acceptance of the acquisition,
acceptance by the Exchange of a National Instrument 43-101 technical
report prepared by a qualified independent consultant, and a concurrent
OVC financing of $5,014,000.
About Virginia Energy Resources Inc.
Virginia Energy Resources Inc.
is a uranium development and exploration
company that holds a 29% stake in the advanced stage Coles Hill uranium
project in Virginia.
The Company is also pursuing active exploration
programs in the Athabasca Basin of Saskatchewan and in the Otish Basin
of Quebec.
On Behalf of the Board of Directors
VIRGINIA ENERGY RESOURCES INC.
Walter Coles Jr., President & CEO
For further information contact: Walter Coles, Jr., President/CEO
or Tony Perri - Investor Relations, Manager
Suite 611, 675 W.
Hastings Street Vancouver, British Columbia, Canada
V6B 1N2
Tel: (604) 669-4799 Website: www.virginiaenergyresources.com
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 this release.
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Copyright (c) 2012 VIRGINIA ENERGY RESOURCES INC.
(VAE) All rights
reserved.
For more information visit our website at
http://www.virginiaenergyresources.com/ or send
mailto:
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