VVC Exploration Enters Option to Increase Interest in Samalayuca By 45,000 Shares

VVC Exploration Company (TSXV:VVC) announced today that it has entered into option agreements with two arm’s-length parties to acquire an additional 45,000 common shares of Samalayuca Cobre, located in northern Mexico, over a period of 36 months by making aggregate cash payments of $850,000 (U.S.) and issuing an aggregate of 32.5 million units of VVC, each unit comprising one common share of VVC and one share purchase warrant exercisable at six cents per share over five years. If the Options are fully exercised then VVC would beneficially own 90,000 shares of SC representing 67.5% of the total outstanding shares of SC.
As quoted in the press release:

The option agreements were entered into with (a) Ressources Orford Inc. (“Orford”), a company incorporated in the Province of Quebec, and (b) Inversiones Agrofinacieras de Panama, S.A. (“IAP”), a company incorporated in Panama. If the Options are fully exercised by VVC, (a) Orford will receive an aggregate of US$750,000, 20 million Units, and (b) IAP will receive an aggregate of US$100,000, 12.5 million Units. The first payment will commence three months after SC has obtained the required approvals for the rezoning on the Kaity Claim (the “Zoning Approvals”), as evidenced by the publication on the Government website. The option payments will be US$85,000 and 4,725,000 Units in Year 1, US$265,000 and 9,525,000 Units in Year 2, and US$500,000 and 18,250,000 Units in Year 3.
CONANP, a Mexican Government agency, approved a revised zoning plan for the area which includes Samalayuca Cobre’s Kaity claim with a new designation, “Mining Exploration and Exploitation” for the Kaity Claims. This revised plan was approved by CONANP on June 25, 2015. The agency then held three days of “Public Consultation” on these revisions on August 26, 27, and 28 in Juarez, Samalayuca, and Chihuahua. A summary of the results of those three Public Consultations is being prepared for review by SEMARNAT (parent agency of CONANP) and COFEMER (the agency that reviews all regulations for conflicts with existing regulations and between agencies), and submission to House of Deputies. The zoning change when approved by CONANP is then published on the Government website, at which time it is final.

VVC Exploration President, Jim Culver, stated:

This transaction has been an objective of VVC for some time and we are pleased to have an agreement in hand. As the Samalayuca Copper Project gets closer to the start of an environmentally sustainable mining project, it is important that VVC be able to exercise control of the project to drive it forward. The property rezoning and the option to purchase additional shares of Samalayuca Cobre are major milestones for VVC.

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