QUEBEC CITY, QUEBEC--(Marketwire - Sept. 27, 2012) - Virginia Mines Inc. ("Virginia")(VGQ.TO) is pleased to announce that it has acquired from CBay Minerals Inc. ("CBay"), jointly with Franco-Nevada Corporation ("Franco-Nevada"), a 2% NSR royalty on the initial 250,000 ounces produced from the Eastmain Property, which consists of a mining lease and 152 claims. The Property is located in the James Bay region, province of Quebec and is host to the Eastmain gold deposit.
CBay is a privately-held company owned by Nuinsco Resources Inc. and Ocean Partners Investments Ltd.
The acquisition was made for a total cash consideration of $450,000.
Virginia and Franco-Nevada share a 2% NSR, which shall be increased by 15% (2.3% NSR) if the gold price is equal or higher than US$750 per ounce.
(VGQ.TO) Virginia conducts its exploration activities over the vast, unexplored territories of Northern Quebec in order to create value for its shareholders while protecting the quality of life for both present and future generations. With a working capital position of $41.2 million as at May 31, 2012, and a large area of mining claims in Quebec North, Virginia is among the most active mining exploration companies in Québec. Strengthened by the discovery of the Éléonore project and more than 15 years expertise on the territory, Virginia's exploration team is recognized as one of the best in Canada. Virginia also holds a 2.2% to 3.5% royalty in the Éléonore property.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in Virginia's Annual Information Form filed with the security commissions of Alberta, Ontario and Quebec, and in the annual report on Form 40-F filed with the U.S. Securities and Exchange Commission. Virginia undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.