NR: 12-02Virginia Energy Resources Inc. (TSX.V:
VAE) (OTCQX:
VAERF) is pleased to announce that it has signed a Letter of Intent (LOI) 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. The 14,976-hectare property is located 130 km north of Kuujjuak in the Labrador Trough and includes several deposits with significant past drilling.
Under terms of the LOI, Orient Venture Capital Inc. will earn a 100% interest in the Hawk Ridge property, subject to underlying royalty interests, by making staged payments totaling $2 million in cash and $1 million in shares of OVC stock. The agreement calls for an initial payment of $500,000 in cash and $250,000 of OVC shares within 5 days of exchange approval of the Qualifying Transaction. The second payment of $500,000 in cash and $250,000 of OVC stock must be delivered to Virginia Energy at any time prior to December 31, 2012. The final tranche of $1 million in cash and $500,000 of OVC shares must be paid by December 31, 2013.
Completion of the transaction is subject to a number of conditions, including, but not limited to, execution of a definitive agreement, Exchange acceptance of the acquisition, acceptance by the Exchange of a 43-101 technical report prepared by a qualified independent consultant, and a concurrent OVC financing of $3.5 million.
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. Virginia Energy Resources Inc. trades on the TSX Venture Exchange under the symbol
VAE and on the OTCQX under the symbol
VAERF.
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
Cautionary Note Regarding Forward-Looking Statements
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. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.