VVC: Diamond Drilling Program for Copper at the Samalayuca Project in Mexico, Letter of Intent on La Tuna and Private Placement Financing
VVC Exploration Corporation (“VVC” or the “Company”) (TSXV:VVC) is pleased to announce (i) the start of diamond drilling on the Samalayuca Copper Project, (ii) the signing of a letter of intent on the La Tuna Gold Property, both projects in Mexico, and (iii) a financing of up to CA$1 million.Drilling Program A diamond drilling program …
A diamond drilling program started on August 23, on the Company’s Samalayuca Copper Project (“Samalayuca”) located in Northern Chihuahua State, Mexico, approximately 50 kilometers to the south of Juarez, MX and El Paso, Texas. The Company recently completed a magnetic survey of the area around the previously mined open pit, La Gloria area which was mined by gambusinos (artisanal miners) up until the 1960’s. An area of low magnetic intensity, generally coincident with, and thought to be reflective of, the alteration associated with the copper mineralization, is being used to guide the planned 3000 m drill program. The Company anticipates completing up to 15 inclined drill holes, each from 100 to 300 m in length, in this exploration phase with the aim of delineating the copper mineralization in the La Gloria pit area.
“We are very excited that after a long period in the permitting process the Company has begun drilling at Samalayuca. Helped by the positive magnetic survey results, we are looking forward to drilling results,” said James Culver, CEO of VVC.
Letter of Intent
The Company has signed a letter of intent with Southern Fuels, Inc. (“SFI”), a US Mining company, whereby SFI can purchase our La Tuna Gold Property located in the state of Sinaloa, Mexico. SFI is performing its due diligence on the property and in order to secure the right to complete the purchase of the property, a formal Purchase and Sale Agreement (“PSA”) needs to be negotiated and a first payment must be made in September 2017. The PSA will be subject to acceptance by the TSX Venture Exchange (“TSXV”). Details of the transaction will be announced once the PSA is finalized and executed by both parties.
Private Placement Financing
The Company is in the process of raising up to CA$1 million in a non-brokered private placement of units of the Company (“Units”) at a price of $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 entitles the holder to purchase one additional common share of the Company for a period of three years, at an exercise price of CA$0.06 per share. The proceeds from the offering will be used for the drilling program on Samalayuca, property option payments in Mexico, current accounts payable, current general administrative expenses, the cost of the issue and for working capital.
The Company is not anticipating at this time paying a commission, however should a commission be paid, it will not exceed the allowable limits imposed by the TSXV.
The offering is subject to all necessary regulatory requirements including the approval of the TSX Venture Exchange. All securities issued pursuant to the offering will be subject to the applicable statutory, exchange and regulatory hold period of four months.
The technical aspects of this news release were reviewed and approved by Peter Dimmell, P.Geo (NL, ON), a director of VVC and a Qualified Person (QP) as defined in National Instrument 43‐101.
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, completing up to 15 drill holes at Samalayuca to better delineate and define a mineable copper resource,finalizing a Purchase and Sale Agreement for La Tuna. and raising up to CA$1 million in financing.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management’s expectations regarding the Drilling Program, financing efforts, future development and 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 the 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 efforts by Company will be successful. 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.
Investors are cautioned that notwithstanding the expectations described herein, there can be no assurance that the plans described herein will be completed as proposed. Trading in the securities of VVC should be considered highly speculative. All forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.