VVC Exploration Private Placement Financings

VVC Exploration Corporation (“VVC” or the “Company“) (TSXV:VVC) is pleased to provide an update on its previously announced CA$1 million in a non-brokered equity private placement. This placement is for units of the Company (“Units”) at a price of $0.05 per Unit, whereby 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 Company has raised to-date about CA$900,000 and have commitments for an additional $460,000. The Company therefore is increasing the maximum amount of the offering to CA$2 million. The proceeds from the offering will be used mostly for ongoing drilling program, maintenance fees and option payments on the Corporation’s Samalayuca Copper Project in Mexico and working capital.
The Company also announces a non-brokered convertible 3-year Debenture private placement financing of up to US$ 2 million whereby the Debenture will be convertible into common shares at a conversion rate US$0.04 per share in the first year and at US$0.08 per share in years 2 and 3. The estimated number of shares to be issued on conversion would be up to 50 million if converted in the first year or 25 million if converted in the years 2 to 5. The Debenture will bear interest at 8% per annum compounded quarterly. As part of the Debenture, the debenture holders will receive an aggregate up to 10,000,000 common share purchase warrants (the “Warrants”) of the Company. Each Warrant entitles the holder to purchase one additional common share of the Company at $0.11 per share for a period of 3 years from closing. It is expected that all the debenture holders will be parties unrelated to the Company. Debenture financing is subject to TSXV acceptance for filing.
The Company is not anticipating paying a commission on either financings, 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.
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. Visit our website at: https://vvcexpl.com.
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.