TORONTO, ONTARIO--(Marketwired - Jun 13, 2017) - VVC Exploration Corporation ("VVC" or the
"Company") (TSX VENTURE:VVC) announces that (i) the Mexican Ministry of the Environment and Natural Resources
(SEMARNAT) has approved the application for a Permit to conduct Advanced Exploration Drilling on its Samalayuca Cobre (Samalayuca
Copper) Project, located in Northern Chihuahua, Mexico, approximately 50 kilometers from El Paso, Texas. In addition, the Company
anticipates raising up to CA$5 (US$3.75) million in Equity and Debenture financings by the end of July.
Drilling Permits :
The approved drilling program entails core drilling at a possible 53 sites on the Samalayuca Copper Project, with the majority
testing the previously producing Gloria Pit, the target location for Samalayuca Copper's pilot mining project, which had
previously been mined by gambusinos (small scale artisanal miners). The drilling will evaluate the copper resources at the Gloria
Pit and provide the Company with a better understanding of the metallurgical characteristics of the copper mineralization.
Maite de Campo, legal representative of the Samalayuca Copper project in Mexico, said: "The Company is committed to complying
with all the guidelines and recommendations of CONANP as well as SEMARNAT."
VVC President Jim Culver reiterated that "VVC and its partners are committed to operating the Samalayuca Copper Project in an
environmentally and socially responsible manner. The Samalayuca Project can have a hugely positive economic impact in the region
without negative environmental consequences."
A NI 43-101 Technical Report for the Samalayuca Project prepared by Michel Boily, Ph.D., P. Geo dated April 20, 2013 was filed
on SEDAR on October 7, 2013 and is available for download at www.sedar.com or
directly from the VVC Website. Michel Boily, Ph.D., P. Geo is an independent "qualified person" as defined by National Instrument
43-101. It should however be noted that this Technical Report is not a feasibility study, prefeasibility study or preliminary
economic analysis, relating to production from the Samalayuca Project, and in addition no NI 43-101 compliant reserves have yet
been defined and as such the project has not been shown to be economic through any studies to-date.
Financing :
VVC intends to raise up to CA$1,000,000 in a non-brokered, equity, private placement of units of the Company ("Units") at a
price of CA$0.05 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant (a "Warrant")
of the Company. Each full Warrant (or 2 half-warrants) entitles the holder to purchase one additional common share of the Company
at CA$0.06 per share for 3 years.
VVC also intends to raise up to US$3,000,000 in a non-brokered, convertible debenture, private placement, of Debenture Units
of the Company. Each Debenture Unit comprises a one hundred thousand dollar (US$100,000) convertible debenture and five hundred
thousand (500,000) warrants ("Debenture Warrants") of the Company. The Debenture bears interest at 8% per annum for a term of 3
years. The Debenture is convertible into shares at US$0.0375 per share in the first year and at US$0.075 per shares in years 2 to
3 and will mature in 3 years. Each Debenture Warrant entitles the holder to purchase one additional common share of the Company
at US$0.11 per share for 3 years.
The proceeds from the financing will be used for drilling on the Company's Samalayuca Copper Project in Mexico, current
accounts payable, current general administrative expenses in Canada and Mexico, and the cost of issue and for working
capital.
The financings are subject to the acceptance of the TSX Venture Exchange and securities issued pursuant to these financings
will be subject to a hold period which expires four months and one day following each closing.
About VVC Exploration Corporation
VVC is a Canadian exploration and mining company with projects in Mexico and Canada, including the Samalayuca copper property
in Chihuahua State, and gold and silver prospects in Sonora and Sinaloa States, Mexico. The Company also has a grassroots
gold/VMS prospect in the Timmins area of northern Ontario.
On behalf of the Board of Directors
Michel J. Lafrance, Secretary-Treasurer
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.
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and
"forward -looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements
or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate",
"propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such
statements include, among others, those concerning the Company's anticipated operational plans and activities including the
revenue and growth outlook. Specifically, they include Company's statement that "raising up to CA$5 (US$3.75) million in Equity
and Debenture financings by the end of July", "The proposed drilling program entails the core drilling of 53 diamond drill
holes", "The drilling will evaluate the copper resources at the Gloria Pit and provide the Company with a better understanding of
the metallurgical characteristics of the copper mineralization.", and "The Samalayuca Project can have a hugely positive economic
impact in the region without negative environmental consequences.".
Assumptions have been made regarding, among other things, management's expectations regarding future growth, plans for and
completion of projects by Company's third-party relationships, availability of capital, and the necessity to incur capital and
other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational
risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of
Company's anticipated projects by Company's third-party relationships, risks affecting Company's ability to develop projects,
risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional
capital. No assurances can be given that the Company's efforts will result in successful financings and drilling program, and
that Operations on the Samalayuca Project can have a hugely positive economic impact in the region. Additional assumptions and
risks are set out in detail in the Company's MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in the forward-looking information or statements are
reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements
because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and
statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update
or revise this forward-looking information and statements except as required by law.