Victoria Gold Corp. (TSX-V: VIT-V “Victoria” or the “Company”) is pleased to announce the closing of the sale of the Cove McCoy Property and to provide a current cash and working capital update.
“The closing of the sale of the Cove McCoy Property leaves Victoria with a strong balance sheet as we progress our flagship Eagle Gold Mine through detailed engineering and permitting,” said John McConnell, President & CEO.
On June 14, 2012, the transaction whereby Victoria sold its interest in the Cove McCoy Property was completed with Victoria receiving cash and securities. See Victoria press releases dated April 10, 2012 and June 5, 2012.
Selected Balance Sheet and Working Capital items as at June 26, 2012
|millions of Cdn$|
|Cash and cash equivalents1||$30.6|
|Accounts receivable, short-term3||11.0|
|Accounts receivable, long-term4||10.0|
|Other working capital6||0.5|
Where exact numbers were not available (such as accruals and payables) approximations based on the best available information have been used.
1 Cash includes funds received from the recent sales of the Cove McCoy, Mill Canyon and Relief Canyon sales.
2 Marketable securities primarily includes shares of Premier Gold Mines Limited (“Premier”) and Pershing Gold Corporation.
3 Accounts receivable, short-term is primarily cash and securities receivable from Premier in June 2013 as well as Harmonized Sales Tax receivable.
4 Accounts receivable, long-term is cash and securities receivable from Premier in June 2014.
5 Accounts payable are day-to-day, trade payables from ongoing operating activities.
6 Other working capital includes prepaid expenses and the current portion of asset retirement obligations.
Potential cash receivables based on contingent events are not included in the table above and include Cdn$20 million associated with the Cove McCoy sale, US$5 million associated with the Mill Canyon sale and numerous royalties on properties located in Yukon, Ontario and Nevada.
Victoria Gold is an emerging gold producer whose flagship asset is its 100% owned Dublin Gulch property which hosts the Eagle Gold Deposit. Dublin Gulch is situated in central Yukon Territory, Canada, approximately 375 kilometers north of the capital city of Whitehorse. The property covers an area of approximately 650 square kilometers, is accessible by road year-round and is located within Yukon Energy’s electrical grid.
The Eagle Gold Deposit is expected to be Yukon’s next operating gold mine and includes Probable Reserves of 2.3 million ozs of gold from 92 million tonnes of ore with a grade of 0.78 grams of gold per tonne, as outlined in a National Instrument 43-101 definitive feasibility study. The NI 43-101 Compliant Mineral Resource has been estimated to host 222 million tonnes averaging 0.68 grams of gold per tonne, containing 4.9 million ounces of gold in the “Indicated” category, inclusive of Probable Reserves, and a further 78 million tonnes averaging 0.60 grams of gold per tonne, containing 1.5 million ounces of gold in the “Inferred” category.
Cautionary Language and Forward-Looking Statements
Neither the TSX Venture Exchange, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. This press release includes certain statements that may be deemed “forward-looking statements”. All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities, anticipated metal production, internal rate of return, estimated ore grades, commencement of production estimates and projected exploration and capital expenditures (including costs and other estimates upon which such projections are based) and events or developments that the Company expects, are forward looking statements. Although the Company believes that the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: metal prices; exploration successes; continued availability of capital and financing; and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.
For Further Information Contact:
President & CEO
Victoria Gold Corp