Vulcan Minerals Inc. to sell its 30% working inter
CIVC, Nwest are not the only one selling there acreage
ST. JOHN'S, NEWFOUNDLAND AND LABRADOR -- (Marketwire) -- 05/04/12 -- Vulcan Minerals Inc. ("the CoXmpany")(TSX VENTURE:VUL) is pleased to announce that following upon a Term Sheet Agreement whereby the Company agreed to sell its 30% working interest in EL 1107 offshore Labrador, the Company and Investcan Energy Corporation, as purchaser, have finalized and signed a definitive purchase and sale agreement. Final closing is expected within 30 days subject to regulatory approval. As previously reported the consideration for the transaction is $1.75 million cash payment on closing and two potential success payments totaling an additional $1.0 million.
Commenting on the transaction, President Patrick Laracy said, "The monetization of the petroleum assets in Labrador along with our recent Bay St. George transaction in western Newfoundland means the Company will have in excess of $5.0 million working capital with no debt and reduced project commitments; thus, no need to finance the Company at the currently dilutive undervalued share price."
The closing of the previously announced Bay St. George transaction is expected next week. The Company has submitted a listing application with the TSX Venture Exchange in respect to its wholly owned subsidiary, Red Moon Potash Inc., whereby Vulcan proposes to provide the initial financing in order for Red Moon to get listed, carry out the pre-drilling phase of the proposed work program and provide necessary working capital. The Company and the Exchange are working through the details of this application.
The Company has been advised by NWest Energy Corp. that it has terminated the letter of intent with Caribe Oil and Gas Ltd. to amalgamate and pursue petroleum opportunities in Argentina. NWest maintains its royalty interests in approximately 500,000 acres of near shore lands prospective for Green Point Shale Oil in western Newfoundland and its securities interests in Shoal Point Energy Ltd. Shoal Point is currently carrying out a drilling and testing program on its Green Point Shale play at Port au Port in western Newfoundland. The Company owns 19% of the outstanding shares in NWest.
Vulcan is a diversified junior exploration company with petroleum and mineral exploration interests in Newfoundland and Labrador.