VVC Exploration Enters $4 Million Loan Agreement, Details Timeline for Samalayuca Pilot Mine

Company News
TSXV:VVC

VVC Exploration Corporation (TSXV:VVC) reported that its wholly owned subsidiary, Camex Mining Development Group Inc. signed a loan agreement with Aeris Trading Corp. for a loan of up to US$4 million. The loan agreement has been conditional accepted for filing by the TSX Venture Exchange, and will provide funds for the completion of the permit and mine planning process on the Samalayuca project. VVC also detailed projections for the Samalayuca pilot mine.

VVC Exploration Corporation (TSXV:VVC) reported that its wholly owned subsidiary, Camex Mining Development Group Inc. signed a loan agreement with Aeris Trading Corp. for a loan of up to US$4 million. The loan agreement has been conditional accepted for filing by the TSX Venture Exchange, and will provide funds for the completion of the permit and mine planning process on the Samalayuca project. VVC also detailed projections for the Samalayuca pilot mine.

As quoted in the press release:

The loan is for US$2 million initially but can be extended to US$4 million, once mining permits for the Samalayuca Copper Project are received. The first $250,000 will be provided to Camex at the earlier of one month following the final signoff of all documents after receipt of the TSXV acceptance, or September 30, 2014. Subsequent draw-downs will be limited to $500,000 per month thereafter up to US$2 million. Interest on the loan is set at 12% per annum, with the first year’s interest prepaid. The loan is for a maximum of 5 years and requires that one half of the revenue to be received from the Samalayuca Copper pilot mining project be used for loan repayment until the loan is paid in full. In addition, for each $500,000 drawn-down, VVC has agreed to provide to the Lender with 1,000,000 shares of common shares of VVC and 2,000,000 share purchase warrants expiring in 5 years, aggregating 8,000,000 shares and 16,000,000 warrants if the full $4 million is received. The exercise price of the warrants is $0.08 per share for the first 2 years and $0.12 per share for years 3 through 5.

Highlights from VVC’s timeline projections for the Samalayuca Project over the next 12-15 months are:

Stage 1: August 2014 – November 2014

Land Use Change Approval first by the Advisory Committee (Advisory Committee approved on July 17 and recently by the Regional Director of CONAP (Division of Mexico’s Environmental Agency that governs Land Use Designation). The National Director of CONAP in Mexico City has said publicly that if the Advisory Committee approved he would also. All of the necessary documentation has been submitted and is pending review by the Director of CONAP in Mexico City
Request for Permits to be filed in September (agency is required to answer in 60 days)
Drilling for pit definition to begin in September
Stage 2: December 2014 – April 2015

All land use changes and permits are expected to be approved and project preparation for pilot production is to begin.
Final drilling for the first open pit mine will be completed.
Construction of roads, heap leach pad, lab, recovery facility, and office should be completed
Stage 3: May 2015 – August 2015

Previously mined ore stockpiled on surface to be placed on heap leach pad
Production of 50,000 tons of ore per month begins (500,000 lbs of copper).
First project cash flow in June/July 2015.

VVC Exploration President, Jim Culver, said:

We are very pleased that with TSXV’s acceptance, VVC has been able to complete this loan facility. This loan, in conjunction with the ongoing private placement, will provide the Company with funding to advance the Samalayuca Copper project to pilot production. VVC expects this pilot mining operation to allow the Company to be cash flow positive from copper production revenue from the Company’s Samalayuca Copper project in the next 12-15 months.

Click here to read the VVC Exploration Corporation (TSXV:VVC) press release

VVC:CA
The Conversation (0)
VVC Resources

VVC Resources Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

×