Symbol:-TSX-V:VR
OTCQX:VRCFF
VANCOUVER,
June 28, 2012 /PRNewswire/ -
Victory Resources Corp. (Symbol VR-TSXV, OTCQX:VRCFF
) (the "Company") is pleased to announce that it has
entered into an agreement with GEM Global Yield Fund Limited
("GEM") for a $5.0 million CDN
financing commitment. Funds raised through this facility will be
used for the ongoing drill program and the subsequent engineering
work to bring the Reforma mine to
feasibility. Funds will also be used for the development of the
Company's recently optioned Boleo property in Mexico, the Toni property located near
Merritt, B.C., as well as general
working capital.
Victory Resources Corp. will control the timing
and maximum amount of any private placement under this agreement,
and has the right, not the obligation, to drawdown on available
funds. As part of the financing commitment, the Company has agreed
to issue 5 million warrants to GEM in conjunction with each private
placement. The warrants will be exercisable for a period of three
years from the closing of each private placement at an exercise
price of $0.72 CDN per share.
"We are very excited to have entered into this
agreement with a world class investment group like GEM. The
$5 million facility will assure that
our company has access to capital beyond our current drill
program," said Wally Boguski,
president and CEO. "We look forward to the results of our ongoing
drill program on the Reforma mine
as well as the results from the drill program on the tailings pond
from the historic Reforma mine
operations."
About GEM
Global Emerging Markets Limited, www.gemny.com,
was founded in 1991. GEM is a $3.4b
investment group having completed 305 transactions in 65 countries.
The firm is an alternative investment group that manages a diverse
set of investment vehicles across the world. GEM's funds include:
CITIC/GEM Fund; VC Bank/GEM Mena Fund*; Kinderhook; GEM Global
Yield Fund; GEM India Advisors, and GEM Brazil PE Fund.
*GEM exited both its LP and GP stakes in Q1
2010.
About Victory Resources Corporation
The company's main focus is on the Reforma property located at the common
boundary of Sinaloa and Chihuahua
States in west central Mexico. The
concessions cover a total area of 7,226 hectares. Victory Resources
will earn a 70% undivided interest in the Reforma property as part of an option
agreement. Formerly owned by Penoles in Mexico, documentation showed that between the
years 1968 to 1980, the Reforma
mine processed 1.8 million tonnes grading an average of 91.62 grams
per tonne Ag, 1.90 per cent Pb, 7.44 per cent Zn and 0.63 per cent
Cu.
The recently optioned Boleo property is situated
on the western foothills of the Sierra Madre Occidental mountain
range, at the common boundary of the northeastern Mexican States of
Sinaloa and Chihuahua and expands
the resource potential of Victory with 20,460 hectares of
contiguous property. This area is characterized by a northerly
prolific mineralized belt hosting the multi-million-tonne porphyry
copper and gold deposits of Santo
Tomas and Bahuerachi.
The Company has also begun exploration work on
the Au-Wen property in British Columbia,
Canada. The Au-Wen property is 100 % owned by Victory
Resources and is located 30 kilometers southeast of Merritt and 8 kilometers east of the historic
Aspen Grove mining camp in
south-central British Columbia,
Canada. The property is comprised of 91 mineral claims
covering an area of 34,200 hectares. The area covered is up to 39
kilometres long and up to 21 kilometres wide.
On behalf of The Board of Directors of
Victory Resources Corporation.
Paul Lee,
Director
This news release contains certain forward
looking statements which involve known and unknown risks, delays,
and uncertainties not under the control of Victory Resources Corp.
which may cause actual results, performance or achievements of
Victory Resources Corporation to be materially different from the
results, performance or expectation implied by these forward
looking statements. Neither 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 press release, which has been prepared by
management.
SOURCE Victory Resources Corporation
