VVC Exploration Receives Final Documentation for $2 Million Loan

VVC Exploration Corporation (TSXV:VVC) announced that its wholly owned subsidiary, Camex Mining Development Group Inc., received the final documentation for a loan of up to US$4 million pursuant to a signed Term Sheet with Aeris Trading Corp.

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 receives 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.

VVC Exploration President, Jim Culver, said:

This loan will provide the Company with much needed funding to advance the Samalayuca Copper project to pilot production. We are pleased with being provided with the opportunity to work with Aeris and look forward to a successful startup of the Samalayuca Copper project.

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