VANCOUVER, Dec. 7, 2012 /PRNewswire/ - Veris Gold Corp. (TSX: VG) (OTCQB: YNGFF) (Frankfurt Xetra Exchange:
NG6A) (the "Company"). The Company is pleased to announce it has filed a
final prospectus supplement in connection with its previously announced
offering of units ("Units") of the Company (the "Offering"). The terms
of the Offering have been amended such that the Offering will now
consist of up to 7,200,000 Units at a price of C$2.10 per Unit
representing aggregate gross proceeds of up to C$15,120,000. Each Unit
will continue to be comprised of one common share of the Company and
one-half of one common share purchase warrant. Each whole warrant (a
"Warrant") entitles the holder to purchase one common share of the
Company for a period of 48 months following closing of the Offering at
an exercise price of C$2.35.
In connection with the Offering, the Company has entered into an agency
agreement with a syndicate of agents co-led by Haywood Securities Inc.
and Casimir Capital Ltd., and includes Global Hunter Securities LLC
(collectively, the "Agents") dated December 6, 2012 (the "Agency Agreement"), pursuant to which the Agents have been
engaged to offer the Units on a best efforts agency basis. Global
Hunter Securities LLC has been engaged to offer the Units only in the
After reviewing the continued improvement in operations in the months of
November and early December, and in light of the current unfavourable
market conditions, the Company reduced the overall size of the
previously proposed offering. The Company believes that certain items
that had been part of the original use of proceeds can be addressed
later in 2013 with excess cash from operations. Specifically, the
planned first quarter drilling of the Mahala basin to convert inferred
resources and certain components of the bonding requirement can be
addressed in the second quarter utilizing free cash flow from
operations. The amount of financing now proposed will be sufficient to
support the Company's current targeted production rates for 2013 and
significantly increase the projected free cash flow the Jerritt Canyon
property can produce, as well as complete the de-risking of the asset
by allowing the Company to complete all the remaining work required
under the Consent Decree.
The Company intends to use the net proceeds to (i) fund the initial
development of Starvation Canyon mine at Jerritt Canyon, (ii) fund a
portion of the additional bonding for future reclamation obligations
arising from the current years investment into a second tailings
facility, (iii) fund the completion of re-grading existing rock
disposal areas at Jerritt Canyon, the final item remaining under the
Consent Decree, and (iv) improve working capital and also for general
corporate purposes, all of which is detailed in the final prospectus
The majority of the net proceeds will be used for building the necessary
infrastructure and making equipment purchases in order to open a third
mine, Starvation Canyon, located on the south end of Jerritt Canyon.
Ground was broken at Starvation Canyon in September 2012 and the portal
was blasted and bolted in November 2012. Targeted production at
Starvation Canyon will be in late Q1, 2013. This new mine is slated to
produce approximately 45,000 ounces of gold per year.
The Offering is expected to close on or about December 18, 2012, subject
to customary closing conditions including, receipt of all necessary
regulatory approvals and the approval of the Toronto Stock Exchange.
The Offering is being made in each of the Canadian provinces of British
Columbia, Alberta and Ontario by way of a prospectus supplement to the
Company's short form base shelf prospectus dated October 31, 2012, and
in the United States pursuant to a prospectus supplement to the
Company's short form base shelf prospectus filed as part of its
registration statement on Form F-10 (File # 333-184496) with the
United States Securities and Exchange Commission (the "SEC") on October
19, 2012, as amended on November 1, 2012 and effective November 2,
2012, pursuant to the United States Securities Act of 1933, as amended.
A final prospectus supplement containing important information relating
to these securities has been filed with the securities commissions in
British Columbia, Alberta and Ontario, and with the SEC in the United
States. Copies of the final prospectus supplement and accompanying
short form base shelf prospectus are available at www.sedar.com and www.sec.gov or by directing a request to Haywood Securities Inc. at Waterfront
Centre, 200 Burrard Street, Suite 700, Vancouver, B.C. V6C 3L6,
telephone (604) 697-7126, Email: firstname.lastname@example.org, Attn: Michelle Jankovich.
Before you invest, you should read the final prospectus supplement and
accompanying short form base shelf prospectus, the registration
statement, and the other documents that the Company has filed with the
SEC at www.sec.gov and with the applicable Canadian Securities Administrators at www.sedar.com for more complete information about the Company and this Offering.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which the offer,
solicitation or sale would be unlawful. The securities being offered
have not been approved or disapproved by any regulatory authority, nor
has any such authority passed upon the accuracy or adequacy of the
final prospectus supplement, the short form base shelf prospectus or
the registration statement.
Veris Gold Corp. is a growing mid-tier North American gold producer in
the business of developing and operating gold mines in geo-politically
stable jurisdictions. The Company's primary asset is the permitted and
operating Jerritt Canyon gold mine located 50 miles north of Elko,
Nevada, USA. The Company also holds a diverse portfolio of precious
metals properties in British Columbia and the Yukon Territory, Canada,
including the former producing Ketza River mine. The Company's focus
has been on the re-development of the Jerritt Canyon mining and milling
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The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
WARNING: The Company relies upon litigation protection for
This press release contains "forward-looking statements" and "forward
looking information" within the meaning of applicable securities laws.
All statements, other than statements of historical fact, including
without limitation, statements relating to plans for or intentions with
respect to the Offering and the Company's use of proceeds from the sale
of the Units are forward-looking statements. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". By their nature,
forward-looking statements and information are based on assumptions and
involve known and unknown risks, uncertainties and other factors that
may cause our actual results, performance or achievements, or industry
results, to be materially different from future results, performance or
achievements expressed or implied by such forward-looking information.
Such risks, uncertainties and other factors include among other things
the following: the need to satisfy regulatory and legal requirements
with respect to Offering; gold price volatility; discrepancies between
actual and estimated production and mineral reserves and mineral
resources; the speculative nature of gold exploration; mining
operational and development risk; and regulatory risks. See the
Company's Annual Information Form for additional information on risks,
uncertainties and other related factors. Although the Company has
attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. The Company does not undertake to update
any forward-looking statements that are incorporated by reference
herein, except in accordance with applicable securities laws.
SOURCE Veris Gold Corp.