VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/19/13 -- VMS Ventures Inc. (TSX VENTURE: VMS) ("VMS Ventures" or the "Company") is pleased to announce that the second tranche of the North American Nickel Inc.(TSX VENTURE: NAN) ("North American Nickel" or "NAN") private placement, is now closed. VMS invested $2 million and, so, has maintained its approx. 27.5% ownership of NAN.
As announced April 22, 2013 and related to Multilateral Instrument 61-101, "Protection of Minority Shareholders in Special Transactions", the additional closing of the second tranche of 15,269,131 Units for gross proceeds of $2,595,752.27 was put on the agenda of NAN's annual and special general meeting held on June 13, 2013. At that meeting, the Company's disinterested shareholders ratified and approved this second tranche of financing from significant shareholders, The Sentient Group and VMS Ventures Inc.
Each Unit consists of one common share and one-half of a common share purchase Warrant. Each whole Warrant entitles the holder to purchase one common share at a price of C$0.21 per share, exercisable for a period of 24 months from the date of issuance.
All securities issued pursuant to the second tranche of the private placement are subject to a hold period and may not be traded until October 19, 2013.
Sentient Executive GP IV, Limited ("Sentient") subscribed for a total of 16,552,399 Units in the financing. Sentient, which is an insider and a related party of the Company, now beneficially owns, or exercises control or direction over, 36,552,399 common shares (or approximately 29.9% of the issued and outstanding common shares) of the Company. Sentient also has warrants entitling it to acquire up to an additional 18,276,199 common shares of the Company.
VMS Ventures Inc. ("VMS") subscribed for a total of 11,764,704 Units in the financing. VMS, which is an insider and a related party of the Company, now beneficially owns, or exercises control or direction over, 33,589,704 common shares (or approximately 27.5% of the issued and outstanding common shares) of the Company. VMS also has warrants entitling it to acquire up to an additional 5,882,352 common shares of the Company.
The proceeds of this financing will be used to fund NAN's 2013 exploration and drill program for its highly prospective Maniitsoq Ni-Cu-Co-PGE project in southwest Greenland and general working capital purposes.
About VMS Ventures Inc:
VMS Ventures Inc. is focused primarily on acquiring, exploring and developing copper-zinc-gold-silver massive sulphide deposits in the Flin Flon-Snow Lake VMS Belt of Manitoba. The Company's VMS project property portfolio consists of the Reed Copper Project, which is subject to a 70-30 JV with HudBay Minerals and, subject to receipt of required permits, is scheduled for production in Q4-2013, Copper Project, McClarty Lake Project, Sails Lake Project, Puella Bay Project and Morton Lake Project. Outside of the Snow Lake camp, the Company holds massive sulphide prospective properties near the past producing Fox Lake and Ruttan copper-zinc mines, near the communities of Lynn Lake and Leaf Rapids in northern Manitoba. These properties are located in the mining friendly province of Manitoba, Canada. The Company also has optioned the Black Creek property in the Sudbury mining camp.
VMS Ventures owns approximately 27.5% of North American Nickel Inc. (TSX VENTURE: NAN). For more information on North American Nickel Inc., please visit www.northamericannickel.com.
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding the costs, plans and schedule to develop the Reed Copper Project, potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward-looking statements that involve various risks. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. VMS Ventures Inc. undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal, B.Sc., President
VMS Ventures Inc.
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.
VMS Ventures Inc.
(604) 986-2020 or Toll Free: 1-866-816-0118
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