YUKON – Victoria Gold Corp. of Toronto has completed a $30-million bought deal public offering consisting of 46.8 million common shares at a price of $0.46 each plus 15.6 million flow-through shares at a price of $0.55 each.
John McConnell, president & CEO commented, “Completing this financing during these difficult market conditions speaks to the quality of Victoria’s assets and strength of our team. We expect the proceeds from this offering to see us through to a project financing decision and the start of construction of the Eagle gold mine”.
The Eagle gold project, says Victoria Gold, shows the ideal combination of positive mineral indicators and a desirable location with road and hydroelectric power access. It hosts an indicated resource of 4.8 million (indicated) and 1.5 million (inferred) gold ounces. A pre-feasibility study on the was completed in Q2 2010 which revealed an open pit valley leach operation with average annual production of 170,000 oz of gold per year based on a probable reserve of 1.75 million oz at a total cash cost of about $500/oz with an initial capital cost of $280 million.
Currently, Victoria Gold is completing a bankable feasibility study on the Eagle mine and is well into the permitting process. Follow progress at www.VitGoldCorp.com.