NEWS...VVC Exploration to acquire 5 uranium exploration properties in Northern Quebec
TORONTO, March 15 /CNW Telbec/ - VVC EXPLORATION CORPORATION (VVC: TSX-V)
(V7S: FSE / BBSE) ("VVC" or the "Company") is pleased to announce that it has
signed a Letter of Agreement to acquire an 100% interest in five (5) uranium
exploration properties (the "Properties"). The properties comprise a total of
282 claims covering approximately 14,000 hectares (140 km(2)) and are located
in the "Ministikuchum Island concession" of the James Bay region of Northern
Quebec.
Previous work was described in a compilation report dated January 2007,
by Mr. Marc Beaumier, geol, who is a qualified person (QP) under National
Instrument 43-101.
The area is located to the north of the La Grande volcanic belt in the
Bienville sub province. From 1973 to 1978, the Societe de Developpement de la
Baie James (SDBJ) conducted large-scale geochemical lake bottom surveys over
the Ministikuchum Island concession under the supervision of C. Gleeson
(geochemist). Quality controlled re analyses of the samples by neutron
activation was carried out by the Quebec Government in the mid nineties.
Samples were analysed at COREM laboratory ( Quebec Government laboratory ) in
Quebec.
High uranium concentrations, up to two orders of magnitude greater than
background were noted in the lake sediments on all five claim blocks with
10 samples giving values greater than 140 ppm, varying from 140 to 640 ppm,
against a background of 7.8 ppm. The highest value was located on the northern
block.
Uranium deposit types thus suggested include: Vein type associated with
shear zones in granitic rocks and possible Rossing style granite hosted
mineralization. Uranium mineralization in these geological settings is
usually, associated with structural zones with high permeability, showing
sodic alteration, chloritization, hematization and/or carbonatization (M.
Beaumier, 2007).
Details of the transaction
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In order to acquire the Properties, the Company is required to:
- Pay the vendors $50,000 on signing of the Letter of Agreement;
- Pay the vendors an additional $200,000, within 5 business days of
obtaining the acceptance of the TSX Venture Exchange ("TSXV");
- Issue to the Vendors two million common shares of the Company, subject
to a four-month hold period and subject to a voluntary escrow over 24
months, whereby 400,000 shares will be released after four months and
60,000 shares will be release every month thereafter, except for in
month 7 where an additional 250,000 shares will be also be released;
- Issue to the Vendors one million share purchase warrants entitling the
holder to purchase 1 million additional shares at $0.45 per share for
2 years;
- Reserve in favour of the vendors a net smelter royalty of 3% on uranium
and 2% on all other metals;
- Issue to the vendors an additional 500,000 shares of the Company upon
completion of an aggregate of $3,000,000 of exploration, 500,000 shares
upon completion of an aggregate of $5,000,000 of exploration and
1,000,000 shares upon completion of a pre-feasibility study, which
expenditures to supported by the audited financial statements.
The Company has also agreed to pay a finder's fee of $85,000 to Services
Conseils Sugarhill Capital Inc., an arm's length company, by a cash payment of
$20,000 and the issuance of 162,500 common shares of the Company.
The Letter of Agreement is subject to review by the TSXV and will not
close until the TSXV acceptance has been obtained, all required regulatory
filings have been completed and all other necessary approvals have been
obtained. On Closing the Company and the vendors will sign a final agreement
and the vendors will deliver to the Company the appropriate documents to
transfer title of the claims to the Company.
Exploration will start as soon as weather conditions permit and will
include: airborne and ground radiometric / magnetic surveys, geological
mapping, prospecting and soil sampling every two hundred meters to be tested
in the field using scintillometers.
The Company will mandate an independent Qualified Person to prepare a NI
43-101 Compliant Technical Report on the Properties as required by the TSX
Venture Exchange.
The technical aspects of this news release were reviewed by independent
(QP) Marc Beaumier.
"We are extremely pleased to acquire new properties in a sector with
phenomenal growth potential. VVC is also aggressively pursuing the acquisition
of other mineral properties, especially Gold, Uranium and Antimony" commented
M. Daniel Grenier President and CEO.
About VVC:
VVC Exploration Corporation is a Canadian exploration company with
projects in Canada and China. VVC also has an indirect participation in the
Beaver Brook Antimony Mine in Newfoundland, Canada and is aggressively
searching for other projects in Canada and in and around China. Visit our
website at www.vvcexploration.com.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release.
On Behalf of the board of Directors
(Signed)
Michel J. Lafrance, Secretary-Treasurer
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For further information: Charles Descary, Manager, Investor Relations,
(514) 631-2727, 1-877-558-2727 ext 222, charles@vvcexploration.com