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 in VGMC 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
Source : http://press.vgmc.com/press-release/en/2012/10/01/Convertible-Preferred-Shares-CPS-%E2%80%93-GOLD/
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