VVC Exploration Corporation (“VVC” or the “Company”) (TSX-V:VVC) announces the following.
Shareholders' Meeting
The Company's virtual Annual General and Special Meeting of Shareholders (“AGSM”) took place virtually on August 28, 2020. At the AGSM, shareholders approved the election of all Directors proposed by Management and the re-appointment of MNP LLP as auditors of the Company. In addition, shareholders approved the 2020 Stock Option Plan (the "SOP"), with the disinterested shareholders, being the insiders of the Company, having abstained from voting. The SOP will be submitted to the TSX Venture Exchange ("TSXV") in order to obtain their acceptance, prior to being implemented and new options being granted.
The formal business session of the AGSM, was chaired by the Chairman of the Board, Terrence Martell. A Presentation and Q&A Session followed, whereby the President and CEO of the Company, Jim Culver, updated the attendees on the status of the Company, and Andre St-Michel, leading consultant to the Company in Mexico, provided a review of the Company’s Gloria Copper Pilot Mine Project and other activities in Mexico.
Both sessions of the AGSM were recorded and will be posted on the Company website, as soon as possible.
Update on Gloria Project
VVC’s Gloria Project field operations which are proximate to both El Paso TX and Juarez MX were shut down in March. Both cities have had and continue to have high levels of COVID cases and VVC has not yet been allowed to reopen field operations.
The Company’s Team in Mexico has been busy optimizing the Gloria mining plan and the recovery methodology, as well as looking for ways to extract more copper from the rock and to do so more quickly. The objective is to create more cash flow more quickly. The Team also continues to search for additional properties and sources of cash flow.
The work in the lab has been particularly important and will be key to an efficient project that recovers a very high percentage of the copper in the rock as quickly and economically as possible, once we are able to resume our activities and start the Gloria Copper Project.
After the COVID shutdown, the debt providers that we had expected to work with on the Gloria Project backed away. However, in the last month several parties have expressed interest in providing debt to the Company to build Gloria. When we have a better feel for the timing of the reopening of the Gloria project, we expect to choose a provider and complete a debt facility.
VVC owns 45,000 shares of Samalayuca Cobre S.A. de C.V. ("SCSA") representing 33.75% of the outstanding 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 shares of SCSA. The Company wished to acquire all the SCSA shares and as such re-negotiated the Option Agreements and entered into discussions with the other SCSA shareholder in order to acquire the remaining 33,333 SCSA shares.
Amended Agreements have been entered into and executed 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 VVC shares and 20,000,000 VVC 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 the first sales of copper.
(b) And with Inversiones Agrofinancieras de Panama, S. A. ("IAP") to acquire 17,500 SCSA shares in consideration for the issuance of 14,200,000 VVC shares and 12,500,000 VVC warrants to be issued on Closing:
Each warrant will entitle the holder to purchase an additional VVC Share at a price of $0.06 per share for a period of 5 years following Closing. The completion of this transaction will be subject to obtaining the requisite approval of the TSXV. Once completed, VVC will control 76.5% of SCSA.
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.
Other Acquisitions
The Company is looking at the possibility of staking new claims in Sinaloa State of Mexico. The area is prospective for gold, silver and copper. Further details will be announced as available.
