Victoria Gold Corp. and Orion Mine Finance Announce C$50 Million Bought Deal Secondary Offering

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TORONTO, Sept. 15, 2020 (GLOBE NEWSWIRE) -- Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) and Orion Mine Finance (“Orion” or the “Selling Shareholder”) jointly announce that they have entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and CIBC Capital Markets (collectively, the “Underwriters”), under which the Underwriters have agreed to buy, on bought deal basis from the Selling Shareholder, 2,942,000 common shares (the “Common Shares”) at a price of C$17.00 per Common Share, for gross proceeds to Orion of approximately C$50 million (the “Offering”). Orion has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following and including the closing of the Offering, to purchase from Orion up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to close on or about September 30, 2020 and is subject to Victoria and Orion receiving all necessary regulatory approvals.

Orion currently holds 25,903,624 Common Shares, representing approximately 41.9% of the issued and outstanding Common Shares. Following the closing of the Offering (assuming no exercise of the over-allotment option), Orion will hold 22,961,624 Common Shares, representing approximately 37.2% of the issued and outstanding Common Shares. Orion has also agreed, subject to certain limited exceptions, not to sell any common shares or other securities of Victoria for a period of 90 days from the closing of the Secondary Offering.

“The Victoria team has done an exceptional job constructing the Eagle Gold Mine, bringing it to commercial production, and creating significant value for all stakeholders,” stated Oskar Lewnowski, Chief Investment Officer of Orion. “As Victoria’s largest shareholder, we have a major economic interest in the long-term success of the Company. We believe the increased trading liquidity from this sale will allow the Company to attract new institutional investors which will in turn lead to further value creation.”

John McConnell, Victoria’s Chief Executive Officer noted, “Orion has been an instrumental partner and an unwavering supporter of Victoria in funding the development of the Eagle Gold Mine. We are grateful for their ongoing support of the Company and look forward to the opportunity of continuing to deliver strong value for all our shareholders through the continued ramp-up and operation of the Eagle Gold Mine.”