Press Release
Convertible Preferred Shares (CPS) – GOLD
October 1st, 2012
Dear
Shareholders,
Virgin Gold Mining
Corporation (Panama) will
cease the offering of CPS –
GOLD effective today, 1st October
2012.VGMC
(Panama) will swap all its
gold mining assets to a Professional Closed-End Fund (PCEF) registered in the
British Virgin Islands (BVI). A new professional corporate team has been set up
to manage the PCEF. All CPS-GOLD holders inVGMC will have their shares and options transferred to this new
investment vehicle designed specifically for public listing purposes.
The Net
Asset Value (NAV) per share of the PCEF will be audited and published on a
monthly basis. In a nutshell, the PCEF is a structured pre-listing step for
CPS-GOLD holders.
To
simplify and further clarify the new development, below is a list of points for
your understanding:
1. VGMC (Panama) stops
offering CPS-GOLD effective today, 1st of October 2012.
2. VGMC (Panama) is
switching all its mining interests and assets into a Professional Closed-End
Fund (PCEF) based in the British Virgin Islands (BVI).
3. In consideration of the entire asset swap, CPS-GOLD shares will
also be transferred from VGMC (Panama) to the PCEF based in the BVI.
4. The
reason for this exercise is to:
-
Create corporate transparency for all financial dealings and asset
accountability in accordance with listing requirements.
- Get
public listed within the next 12 – 15 months.
5. The PCEF will be in full operation after the transfer of all
assets and shares from VGMC (Panama) are completed, which is expected to be
on the 1st of December
2012. Shareholders will be able to see all their shares and options statement
in the PCEF through the PCEF website.
6. The
value of shares in the PCEF is forecasted to start at USD2.50 (or other
currency in equivalent value) in December 2012. The Net Asset Value (NAV) of
shares in the PCEF will be audited and accounted by certified public accounting
firm on a monthly basis to show full corporate accountability and transparency.
7. All
monthly dividends will be re-invested into the company’s operation to create a
larger and stronger mining corporation. This will benefit the shareholders as
the Net Asset Value (NAV) per share will increase in compound value by 13-18%
per month until listing.
8.
Shareholders who elect not to have their shares listed when the listing offer
documents are ready by the end of 2013 may opt for a “Voluntary Asset
Distribution”. Non-listed assets may be distributed to shareholders who opt not
to have their shares listed.
9. The PCEF is expected to be listed by the end of 2013 at an
estimated price of not less than USD10 per share. In brief,VGMC shareholders can anticipate their
assets to appreciate approximately 5 times (last CPS-GOLD price subscribed by
shareholders in September 2012 is USD1.70 per share) between now and the
listing date.
10.
Shareholders will be asked to download a Self Declaration Form and notarize it
together with a copy of their Local ID Card or Passport and a Proof of Address.
This set of documents must be sent to the company as part of the listing
requirements. Further details will be announced later this month.
11. How we convert CPS-GOLD from VGMC (Panama) to the PCEF in BVI:
• Gold Trading module will be stopped and
losses absorbed by the company.
• All Gold balance in VGMC shareholders’
gold account are automatically converted to credits on 1st October 2012.
• Group Bonus for September is paid on 1st October 2012.
• The last day of payment for CPS-GOLD
dividend is 30th September
2012(Dividend due on 31st has
also been paid on 30th September
2012).
• As there will be no Gold and Credit
Account in the PCEF, all credit balances will be automatically converted to
CPS-GOLD share at the rate of USD1.70 per share on the 1st of October 2012. Unfortunately we
are unable to offer any alternatives to this process and while we understand
that not all shareholders will be in favour of the decision, the management
strongly believes that the long-term benefits will outweigh the disadvantages.
We urge all shareholders to take a long-term view in this matter, as we expect
shares in PCEF to increase five (5) fold within the next 12-15 months, much to
the advantage of the shareholders.
• Internal auditing starts on 1st October 2012, so all CPS-GOLD will
be converted to PCEF share within the next 60 days.
• All VGMC (Panama) Gold Mining Assets is to be audited
and transferred to the PCEF (BVI) effective 1st October 2012
• PCEF share is expected to be valued at
USD2.50 per share in December 2012 and increase by a compound value of 13 -18%
per month until listing within the next 12 – 15 months.
12. Our
investment bankers, financial and audit consultants will be advising the
company and shareholders on the PCEF listing jurisdiction and other
requirements in the later part of 2013.
13. Any other details will be clarified when the PCEF is in full
operation by the 1st of
December 2012.
The
management urges shareholders to exercise patience and understanding with
regard to this exciting development.
Regards
Kenneth
Elinger
CEO – Virgin Gold
Mining Corporation
