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Virginia Mines Signs Option Agreement with TerraX to Acquire NSR Royalty on Northbelt Property

By: MT Newswires
Posted: 5/9/2013 11:07:00 AM
Referenced Stocks: NSR

Virginia Mines Inc. (VGQ.TO) has entered into an agreement with TerraX Minerals Inc. pursuant to which it has the option to purchase, in consideration for an amount of $2 million, a 2% net smelter return ( NSR ) royalty on the Northbelt property located in the area of Yellowknife, Northwest Territories. It consists of 121 mining leases covering an area of 3,562 hectares covering approximately 13 kilometers along the prolific greenstone belt in Yellowknife, host of the Con (5 M oz.) and Giant (7 M oz.) gold deposits.

In connection with this agreement, Virginia has also subscribed by way of private placement for 3,617,085 units of TerraX at a price of $0.20 per unit for gross proceeds of $723,417.

VGQ edged up by about 1% to $9.69, with 52-week range of $7.55 - $11.25.