Victoria Completes Guyanese Gold Asset
Transaction
Toronto, ON � April 27, 2010 � Victoria Gold Corp. (VIT.TSX-V)
(�Victoria� or the �Company�) is pleased to announce that the sale of the subsidiary which
holds all of the interests in the Company�s Guyanese gold assets to
Takara Resources Inc. (�Takara�) as previously announced (see news
release dated November 13, 2009) has been completed.
Chad
Williams, President, CEO and Director of Victoria commented, �We are
pleased to monetize the value of these assets which will allow us to
increasingly sharpen our focus on our existing advanced Canadian and
American gold assets. The Guyanese gold assets are being passed to an
up-and-coming gold company with solid management and strong leadership. The
significant equity position that Victoria will maintain in Takara will
allow the Company to participate in the upside that we believe still
exists in these underexplored high-potential Guyanese gold assets.�
Pursuant
to this transaction, Takara has issued 21,858,355 (or 56% prior to the
closing of Takara�s previously announced private placement financing) of
its common shares to Victoria. The shares are subject to a 4-month hold
period and will be held in escrow with a release as follows: 10% on
issuance of the TSX Venture Exchange bulletin and 15% every six months
thereafter for a period of three years. Victoria is restricted, subject
to Takara Board approval, from trading, on any one day, more than 25% of
Takara�s daily trading volume based on a 30-day average. Prior to closing,
Victoria held 350,000 of Takara�s shares and thus Victoria now currently
holds 22,208,355 (or 42.5%) of Takara�s issued and outstanding shares
post-closing of the asset sale and of Takara�s previousl y announced
private placement financing. Victoria shall also be entitled to an
additional 4,000,000 shares of Takara in the event that Takara reaches
certain operational or exploration milestones. Victoria is also entitled
to a pre-emptive right, expiring on September 30, 2011, subject to
extension, enabling it or any of its affiliates to participate in future
equity financings in Takara, in order to maintain a minimum 19%
shareholding, on a non-diluted basis.
As part of the transaction, John
McConnell, Victoria�s Executive Vice President, and Marty Rendall,
Victoria�s Chief Financial Officer, were appointed to the board of Takara
effective on closing.
About Victoria
Victoria Gold Corporation is
a high-growth gold company focused on adding value per share through
efficient exploration, project development, accretive acquisitions, and
effective marketing. Maintaining a low risk profile through project
diversification, sound financial management, and operating in secure
jurisdictions are key priorities for Victoria�s management team.
On Behalf of Victoria Gold Corp.
Chad Williams, P. Eng, CEO, President & Director
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Cautionary Language and 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 press release includes certain statements
that may be deemed "forward-looking statements". All
statements in this discussion, other than statements of historical
facts, that address future exploration drilling, exploration activities
and events or developments that the Company expects, are forward-looking
statements. Although the Company believes the expectations expressed in
such forward looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in
forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looki ng statements include
metal prices, exploration successes, continued availability of capital
and financing, and general economic, market or business conditions.
Accordingly, readers should not place undue reliance on forward-looking
statements. Forward-looking statements are based on the beliefs,
estimates and opinions of the Company�s management on the date the
statements are made. Except as expressly required by applicable
securities laws, the Company undertakes no obligation to update these
forward-looking statements in the event that management�s beliefs,
estimates or opinions, or other factors, should change.
This news release and the information contained
herein does not constitute an offer of securities for sale in the
United States and securities may not be offered or sold in the United
States absent registration or exemption from registration.
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