Vangold Resources Ltd.
VANGOLD RESOURCES LTD. TSX-V:VAN NEWS RELEASE
VANGOLD ENTERS SHARES FOR DEBT AGREEMENT ----------------------------------------------------------------------------------------------- June 4th, 2014 -- Vancouver, British Columbia - Vangold Resources Ltd ("Vangold" or the "Company") announces it has entered into a debt settlement agreements with certain arm's-length third parties and past management of the company. All shares for debt agreements represent equal payouts to all creditors based on Vangold’s average share price of $0.02. The company has agreed to issue an aggregate of 1,930,200 units at a deemed price of $0.13 to six separate creditors. Each unit will consist of one common share and one full warrant with an exercise price of $0.15 and a two year expiry. The company has also entered into an agreement with one member of past management to issue an aggregate of 848,000 common shares at a deemed price of $0.05. The amount of indebtedness settled by the transactions is $361,567.06. The company determined to satisfy this outstanding indebtedness with shares due to lack of funds. The transactions are subject to TSX Venture Exchange acceptance. All shares issued pursuant to the transaction are subject to any TSX mandated hold period.
Vangold will also issue 977,779 bonus common shares owed in consideration of two past lenders. The shares were required following the closing of the debts which occurred in the first quarter of 2014. Following the completion of the proposed shares for debt transaction and the issuance of bonus shares, Vangold will have an estimated 24,092,320 outstanding common shares.
Vangold continues to work with its PNG Creditor group in finalizing the PNG Creditor Agreement, announced originally on February 5th, 2014 whereas Vangold will transfer ownership of its subsidiary Pacific Kanon Gold Corporation, which holds title to three exploration tenements in Papua New Guinea, in exchange for all of the outstanding debt of the PNG Creditor Group of approximately $460,000 (CAD). These tenements comprise of Mt. Penck (EL 1322), Fergusson Island (EL 1324) and Allemata (EL 1323). To the companies knowledge the tenements have not had their licenses renewed yet.
Vangold Resources Ltd. is headquartered in Vancouver, Canada, and has a diversified portfolio of mineral projects in North America, as well as oil and gas concessions in Armenia. Vangold's shares are listed on the Toronto Venture Stock Exchange under the symbol VAN and on the Frankfurt Stock Exchange under the symbol VAQ.
To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca or contact Dal Brynelsen at [email protected].
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.
Disclaimer for Forward Looking Information
This news release includes forward looking statements that are subject to assumptions, risks and uncertainties.
Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning the Company's intentions, plans, estimates, expectations or beliefs regarding the future. Although the Company believes that any forward looking statements in this news release are reasonable, there can be no assurance that any such forward looking statements will prove to be accurate. The Company cautions readers that all forward looking statements, including without limitation those relating to the Company's future operations and VANGOLD RESOURCES LTD. Page 2 of 2
business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.
Any forward looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward looking statements. The Company assumes no obligation to update any forward looking statements, whether as a result of new information, future events or otherwise