VVC Exploration – Acquisition of Additional Shares of Samalayuca Cobre and Extension of Previously Issued Warrants
TORONTO, Nov. 03, 2020 (GLOBE NEWSWIRE) — VVC Exploration Corporation (“VVC” or the “Company“) (TSX-V:VVC) announces the following transactions.
Acquisition of Remaining Shares of Samalayuca CobreThrough its wholly owned subsidiary, Camex Mining Development Group Inc., VVC currently owns 45,000 shares of Samalayuca Cobre S.A. de C.V. (“SCSA”) representing 33.75% of the outstanding shares of SCSA (the “SCSA shares”). Pursuant to Option Agreements entered into in September 2015 with Ressources Orford Inc. (“Orford”) and Inversiones Agrofinancieras de Panama, S. A. (“IAP”), the Company had options to purchase an additional 45,000 SCSA shares. The Company wished to acquire all the SCSA shares and as such entered into discussions with all the SCSA shareholders to finalize agreements to acquire the remaining 88,333 SCSA shares.For this purpose, the Company entered into three (3) agreements, subject to approval of the TSXV Venture Exchange (“TSXV”), to acquire 88,333 SCSA shares for the aggregate consideration of $750,000, and the issuance of 27,200,000 shares of VVC (“Shares”), and 32,500,000 of Warrants of VVC (“Warrants”), as follows:(a) With Orford to acquire 37,500 SCSA shares in consideration for cash payments of US$550,000 and the issuance of 10,000,000 Shares and 20,000,000 Warrants. The Shares and Warrants will be issued on Closing, a first payment of $150,000 will be made within 30 days following receipt the Explosive Permit in Mexico, and the remaining cash payments are to be made over a period of 19 months following the receipt of sales proceeds from the first sales of copper.(b) With IAP to acquire 17,500 SCSA shares in consideration for the issuance of 14,200,000 Shares and 12,500,000 Warrants to be issued on Closing.(c) With Micose S.A. de C.V. for the acquisition of 33,333 SCSA shares in consideration for cash payments of US$200,000, to be paid, half on Closing with the balance paid over a period 120 days following receipt of the Explosive Permit in Mexico, and for the issuance of 3,000,000 Shares be issued on Closing.
Each Warrant will entitle the holder to purchase an additional Share at a price of $0.06 per Share for a period of 5 years following Closing. Having received the Conditional Approval of the TSXV, the Company will proceed with the closing (the “Closing”) of these three (3) transactions simultaneously at the earliest convenient time. Once completed, VVC will control 100% of SCSA. These agreements were first disclosed in news releases on September 1 and 28, 2020.SCSA is the owner of the Kaity Property where the Gloria Cooper Project is located. A National Instrument (NI) 43-101 Technical Report on the Kaity Property by Jacques Marchand P.Eng. Geology, dated April 21, 2019, was filed on SEDAR on May 7, 2019.Warrant ExtensionsFollowing an application to the TSXV announced in a news release issued on October 26, 2020, the Company amended its application to only extend the warrants issued pursuant to equity private placements, and exclude warrants issued pursuant to debt conversions and debenture issuances. The TSXV approved the amended warrant extension and the new expiry dates are as follows:About VVC Exploration CorporationVVC is a Canadian exploration and mining company focused on the exploration and development of copper and gold deposits in Northern Mexico, specifically the Gloria Copper Project located in Chihuahua State. VVC has other projects in Mexico and Canada, including gold and silver prospects, Cumeral and La Tuna, in Sonora and Sinaloa States, Mexico and a grassroots gold/VMS prospect in the Timmins area of Northern Ontario. Visit our website at: http://vvcexpl.com.
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.2369 Kingston Road, PO Box 28059 Terry Town, Scarborough, ON M1N 4E7 – Tel: 416-619-5304