Veris Gold Corp. Announces Filing of Final Prospectus Supplement
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 United States.
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 supplement.
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: ecm@haywood.com, 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 facility.
If you would like to receive press releases via
email please contact nicole@verisgold.com and specify "Veris Gold
Corp. releases" in the subject line.
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 "forward-looking" statements.
Forward-Looking Statements
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.