🕐20.10.11 - 19:54 Uhr
VIRGINIA ENERGY BENEFITS FROM INVESTMENT IN BOSS POWER
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Re: News Releases - Thursday, October 20, 2011
Virginia Energy Benefits from Investment in Boss Power
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NR: 11-09
Virginia Energy Resources Inc.
(TSX.V:VAE) is pleased to report a
positive outcome in the lawsuit by Boss Power Corp.
(TSX.V: BPU)
against the Province of British Columbia for the deemed expropriation
of the Blizzard uranium property.
The Province has agreed to pay Boss
Power Corp.
$30 million plus taxable costs and disbursements in return
for the surrender or transfer of the Blizzard Mineral Claims to the
Province.
As a result, the trial of the lawsuit in British Columbia
Supreme Court will not proceed.
Virginia Energy Resources ("Virginia Energy") owns 27,250,000 shares of
Boss Power Corp., which represents 37% of the shares outstanding in
that company.
If the 37% interest in Boss Power Corp.
were valued
according to Virginia Energys interest in the cash settlement of $30
million, it would add approximately $12 million to Virginia Energys
liquid asset holdings.
Virginia Energy currently has cash of $2.3 million and liquid assets
with a market value of $2.6 million, excluding the companys interest
in Boss Power Corp.
Since Virginia Energys current market
capitalization is approximately $19 million it seems that almost no
value is ascribed to either Virginia Energys exploration assets in
Saskatchewan and Quebec or its 29.4% interest in the Coles Hill uranium
property.
Alternatively the market is not ascribing any value to the
companys cash and liquid assets.
Virginia Energys largest investment is the 29.4% stake in a private
company, VA Uranium Holdings, Inc., which controls the Coles Hill
uranium property.
This private company is financially secure with net
cash of $6.0 million and it also owns a land package purchased for $8.6
million.
Coles Hill is considered to be one of the largest undeveloped uranium
deposits in the United States.
It has a measured and indicated resource
of 119 million pounds of U3O8 (98.7 Mt at 0.060 percent U3O8 at a
cut-off grade of 0.025 percent U3O8), including a higher grade zone of
77.4 million pounds of U3O8 (37.7 Mt at 0.103 percent U3O8 at a cut-off
grade of 0.050 percent U3O8) based on an April 29, 2009 National
Instrument 43-101 Technical Report prepared for the Company by Behre
Dolbear and Company Ltd., Marshall Miller and Associates Inc., and PAC
Geological Consultants Inc.
(Dr.
Peter Christopher, P.Eng.).
This
report is available on SEDAR and on Virginia Energy Resources website.
The National Academy of Science (NAS) has almost finished with its
study on the safety of a modern uranium mining industry in the state of
Virginia.
The study appears on schedule to be completed by December 1,
2011.
Pending a positive outcome from the NAS study, the Virginia state
legislature would then be in a position to consider lifting the
moratorium on uranium mining in Virginia during the January 2012
legislative session, which would have positive implications for the
Coles Hill project.
On Behalf of the Board of Directors
VIRGINIA ENERGY RESOURCES INC.
Walter Coles Jr., President & CEO
Neither TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
This news release includes certain "forward-looking statements" under
applicable Canadian securities legislation.
All statements other than
statements of historical fact included in this release, including,
without limitation, statements regarding future plans and objectives of
the Company are forward-looking statements that involve various risks
and uncertainties.
There can be no assurance that such statements will
prove to be accurate and actual results and future results, events and
objectives could differ materially from those anticipated in such
statements.
Important factors that could cause actual results to differ
materially from the Companys expectations include exploration and
other risks detailed from time to time in the filings made by the
Company with securities regulators.
For further information contact:
Walter Coles, Jr., President/CEO or Tony Perri - Investor Relations,
Manager
Suite 611, 675 W.
Hastings Street Vancouver, British Columbia, Canada
V6B 1N2
Tel: (604) 669-4799
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Copyright (c) 2011 VIRGINIA ENERGY RESOURCES INC.
(VAE) All rights
reserved.
For more information visit our website at
http://www.santoy.ca/ or send mailto:
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