TSX Venture Exchange: VAL
TORONTO,
Dec. 4, 2014 /CNW/ - ValGold
Resources Ltd. ("ValGold" or the "Company") is pleased to announce
that, further to its press release of November 12, 2014, that it has closed the secured
convertible credit facility (the "Facility") in the aggregate
amount of $200,000.
The Facility consists of units (the "Units"),
with each Unit comprised of a $1,000
debenture (the "Debentures") and 20,000 warrants (the
"Warrants"). Each Warrant is exercisable into a common share
at a price of $0.05 per common share
until the earlier of: (i) five years after the date of issue; and
(ii) the date on which the Debentures are redeemed. The
Debentures, which bear an annual interest rate of 10%, mature and
become due and payable on December 1,
2015 and may be redeemed earlier by the
Company. The entire principal amount of each Debenture
(including undrawn amounts) may be converted at an investor's
option until the earlier of (i) five years from the date of issue;
and (ii) the date redeemed by the Company. The conversion
price of Debentures into ValGold common shares is (i) $0.05 per common share for the first year from
the date of issue; and (ii) $0.10
thereafter.
The Facility will provide working capital for the
Company's ongoing operations and is secured by a pledge of all of
the Company's present and after-acquired property and assets
pursuant to a general security and pledge agreement.
The Facility is subject to various events of
default including: (i) failure of the Company to maintain its TSX-V
listing and status as a reporting issuer in its current
jurisdictions; (ii) failure to file interim and annual financial
statements; and (iii) the issuance of any judgment against the
Company.
The securities issued in connection with the
Facility are subject to a hold period in Canada until April
2, 2014. No bonus, finder's fee, commission, agent's
option or other compensation was paid in connection with the
Facility.
Further details on the Facility are provided in
the Company's press release of November 12,
2014.
ValGold is a mineral exploration and development
company which holds an exploration property in Ontario and a royalty on Northern Gold Mining
Inc.'s Garrison Project.
This release was prepared by management of the
Company who takes full responsibility for its contents.
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 release.
This news release contains certain
"Forward-Looking Statements" within the meaning of Section 21E of
the United States Securities Exchange Act of 1934, as amended and
"Forward Looking Information" within the meaning of applicable
Canadian securities legislation. Some forward looking statements
and forward looking information contained in this release are
forward-looking and, therefore, involve uncertainties or risks that
could cause actual results to differ materially.
SOURCE Valgold Resources Ltd.