Victoria Gold arranges $7.5-million bought deal

2009-02-19 17:21 ET - News Release

Mr. Chad Williams reports

VICTORIA GOLD ANNOUNCES $7.5M BOUGHT DEAL PRIVATE PLACEMENT OFFERING

Victoria Gold Corp. has entered into an agreement with a syndicate of underwriters, led by Wellington West Capital Markets Inc., to sell a total of 11.12 million units and 5.56 million subscription receipts, each priced at 45 cents, for gross proceeds of $7,506,000 on a bought-deal private placement basis. Each unit comprises one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share at a price of 55 cents for a period of 36 months following the closing of the offering.

Upon satisfaction of certain escrow release conditions, each subscription receipt will be exercisable, for no additional consideration, into one common share (SR share) and one-half of one common share purchase warrant (SR warrant). Each SR warrant will entitle the holder to acquire one additional common share at a price of 55 cents for a period of 24 months following the closing of the offering. The escrow release conditions include the completion by the company of the previously announced acquisition of StrataGold Corp. In the event that the escrow release conditions are not satisfied by June 30, 2009, the gross proceeds from sale of the subscription receipts plus any accrued interest will be returned to the purchasers of subscription receipts