Convertible Debenture Financing of $1,095,000 Closed

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Subject to the final approval of the TSX Venture Exchange, Virgin Metals Inc. (TSXV:VGM) closed a non-brokered private placement of $1,095,000 by way of an 8% secured convertible debenture.

As quoted in the press release:

Each Debenture carries a yield of 8% per annum, with interest calculated and payable quarterly in arrears on that portion of the principal amount outstanding and maturing two (2) years from the date of issuance or such earlier date as may be provided for in the Debenture. As security for the due payment of the proceeds hereunder, the Debenture will be secured by a mortgage over the Corporation’s Los Verdes Property.

Each Debenture is convertible into fully paid common shares of the Company at a price equal to $0.30 per common share. The Company may redeem all or any portion of the Debenture after March 31, 2012 or force the conversion of all of the Debentures in the event that the common shares of the Company trade at an average closing price of $0.60 over a 20-day trading period on the TSX Venture Exchange.

In connection with the private placement, the Company paid finders’ fees of $23,100 to certain finders.

Click here to read the Virgin Metals Inc. (TSXV:VGM) press release