VVC Announces Samalayuca Drilling Permit Approval and Planned Financing
TORONTO, ONTARIO--(Marketwired - Jun 13, 2017) - VVC Exploration Corp. ("VVC" or the "Company") (TSX VENTURE:VVC) announces that (i) the Mexican Ministry of the Environment and Natural Resources (SEMARNAT) has approved the application for a Permit to conduct Advanced Exploration Drilling on its Samalayuca Cobre (Samalayuca Copper) Project, located in Northern Chihuahua, Mexico, approximately 50 kilometers from El Paso, Texas. In addition, the Company anticipates raising up to CA$5 (US$3.75) million in Equity and Debenture financings by the end of July.
Drilling Permits:
The approved drilling program entails core drilling at a possible 53 sites on the Samalayuca Copper Project, with the majority testing the previously producing Gloria Pit, the target location for Samalayuca Copper's pilot mining project, which had previously been mined by gambusinos (small scale artisanal miners). The drilling will evaluate the copper resources at the Gloria Pit and provide the Company with a better understanding of the metallurgical characteristics of the copper mineralization.
Maite de Campo, legal representative of the Samalayuca Copper project in Mexico, said: "The Company is committed to complying with all the guidelines and recommendations of CONANP as well as SEMARNAT."
VVC President Jim Culver reiterated that "VVC and its partners are committed to operating the Samalayuca Copper Project in an environmentally and socially responsible manner. The Samalayuca Project can have a hugely positive economic impact in the region without negative environmental consequences."
A NI 43-101 Technical Report for the Samalayuca Project prepared by Michel Boily, Ph.D., P. Geo dated April 20, 2013 was filed on SEDAR on October 7, 2013 and is available for download at www.sedar.com or directly from the VVC Website. Michel Boily, Ph.D., P. Geo is an independent "qualified person" as defined by National Instrument 43-101. It should however be noted that this Technical Report is not a feasibility study, prefeasibility study or preliminary economic analysis, relating to production from the Samalayuca Project, and in addition no NI 43-101 compliant reserves have yet been defined and as such the project has not been shown to be economic through any studies to-date.
Financing:
VVC intends to raise up to CA$1,000,000 in a non-brokered, equity, private placement of units of the Company ("Units") at a price of CA$0.05 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant (a "Warrant") of the Company. Each full Warrant (or 2 half-warrants) entitles the holder to purchase one additional common share of the Company at CA$0.06 per share for 3 years.
VVC also intends to raise up to US$3,000,000 in a non-brokered, convertible debenture, private placement, of Debenture Units of the Company. Each Debenture Unit comprises a one hundred thousand dollar (US$100,000) convertible debenture and five hundred thousand (500,000) warrants ("Debenture Warrants") of the Company. The Debenture bears interest at 8% per annum for a term of 3 years. The Debenture is convertible into shares at US$0.0375 per share in the first year and at US$0.075 per shares in years 2 to 3 and will mature in 3 years. Each Debenture Warrant entitles the holder to purchase one additional common share of the Company at US$0.11 per share for 3 years.
The proceeds from the financing will be used for drilling on the Company's Samalayuca Copper Project in Mexico, current accounts payable, current general administrative expenses in Canada and Mexico, and the cost of issue and for working capital.
The financings are subject to the acceptance of the TSX Venture Exchange and securities issued pursuant to these financings will be subject to a hold period which expires four months and one day following each closing.
About VVC Exploration Corporation
VVC is a Canadian exploration and mining company with projects in Mexico and Canada, including the Samalayuca copper property in Chihuahua State, and gold and silver prospects in Sonora and Sinaloa States, Mexico. The Company also has a grassroots gold/VMS prospect in the Timmins area of northern Ontario.
On behalf of the Board of Directors
Michel J. Lafrance, Secretary-Treasurer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward -looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated operational plans and activities including the revenue and growth outlook. Specifically, they include Company's statement that "raising up to CA$5 (US$3.75) million in Equity and Debenture financings by the end of July", "The proposed drilling program entails the core drilling of 53 diamond drill holes", "The drilling will evaluate the copper resources at the Gloria Pit and provide the Company with a better understanding of the metallurgical characteristics of the copper mineralization.", and "The Samalayuca Project can have a hugely positive economic impact in the region without negative environmental consequences.".
Assumptions have been made regarding, among other things, management's expectations regarding future growth, plans for and completion of projects by Company's third-party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of Company's anticipated projects by Company's third-party relationships, risks affecting Company's ability to develop projects, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional capital. No assurances can be given that the Company's efforts will result in successful financings and drilling program, and that Operations on the Samalayuca Project can have a hugely positive economic impact in the region. Additional assumptions and risks are set out in detail in the Company's MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.
Contact
Patrick Fernet
pfernet@vvcexploration.com
(514) 631-2727