/NOT FOR DISSEMINATION IN THE
UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE
SERVICES/
TORONTO, May 27, 2014 /CNW/ - Viking Gold Exploration Inc.
(TSX-V: VGC), the "Company" or "Viking Gold", announces a debenture
financing to raise funds for general working capital purposes and
to support existing exploration property commitments.
On April 15, 2014, the Company
commenced a private placement for a maximum of $150,000 of 10% unsecured convertible debentures
(the "Debentures"). The Debentures bear interest at the rate of 10%
per annum which interest will accrue and be paid on the
June 30, 2015 maturity date. The
Debentures will be issued with principal in denominations of
$1,000 and multiples thereof.
The Debentures (plus any unpaid and accrued interest) are
convertible, at the option of the holder, into units (each a
"Unit") at a conversion price (the "Conversion Price") of
$0.01 per Unit over the term of the
Debenture, subject to the TSX-V minimum pricing requirement of
$0.05 for the first 12 months and
$0.10 thereafter until maturity. In
the event of a share consolidation by the Company, the Conversion
Price will be adjusted proportionately, though it will still be
subject to the same $0.05 and
$0.10 TSX-V minimum pricing
requirements on a post-consolidation basis.
Each Unit will consist of one common share and one common share
purchase warrant. Each warrant will entitle the holder to acquire
one common share of the Company at the Conversion Price for a
period of 36 months from the date of issuance of the warrant. The
TSX-V conditionally approved this transaction on April 16, 2014. The TSX-V's final approval is
subject to the Company meeting its documentation filing
requirements on or before June 23,
2014 (extended from May 19,
2014). The TSX-V, in its discretion, may refuse to provide
final acceptance in regard to the subscription of one or more
subscribers.
The Company has completed the initial financing, closing a total
of $47,500 of the Debentures
including $10,000 with a related
party, and the Company is now extending the offering. The Company
presently has a total of 79,778,229 outstanding common shares,
4,845,280 outstanding common share purchase warrants and 6,650,000
outstanding common share purchase options.
About Viking Gold
Viking Gold Exploration Inc. is a gold-focused, Canadian mineral
exploration company. It is a reporting issuer in the Provinces of
Ontario, Newfoundland and Labrador, British
Columbia and Alberta.
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 press release.
SOURCE Viking Gold Exploration Inc.