VVC Exploration Provides Mexican Projects Update
TORONTO, ONTARIO--(Marketwired - Dec 31, 2013) - VVC Exploration Corp. (TSX VENTURE:VVC) ("VVC" or the "Company") is pleased to announce that the December 6, 2013 edition of the Juarez Journal in Juarez, Chihuahua State, MX., reported that the head of the National Commission of Natural Protected Areas ("CONAP"), Luis Fueyo MacDonald, "promised to make adjustments to the Program Management Protected Area to allow Samalayuca Copper Mining Company ("Samalayuca") to start exploration and exploitation of their Kaity claim." The property is located in northern Chihuahua State, MX., approximately 60 km to the south of Juarez. This is one of the last hurdles in our process of obtaining all the necessary permits for the start of production at the Samalayuca copper project.
VVC owns 33.75% of Samalayuca and is focusing its efforts on starting production in 2014. VVC President, Jim Culver, pointed out that "this announcement from CONAP increases our confidence that all necessary governmental permits and land use change will be in place by the end of the first quarter of 2104 allowing the start of copper production during 2014." Culver noted that "Samalayuca continues to be strongly supported by the local community in this process."
Firex SA, a Mexican company, specializing in construction and operation of open pit mining projects, who own 25% of Samalayuca, has signed a contract with Samalayuca to manage the mining and copper production process and will provide up to $7 million in start-up loans to the company. MacDonald's announcement will allow Firex to finalize their planning so that work could commence on the first heap leach pad and pit in the second quarter of 2014.
Given the near term nature of the project, VVC is negotiating with potential lenders who will lend against copper production from Samalayuca. VVC is committed to provide up to $2 million to pay for the permits, exploration and management at Samalayuca and has already advanced approximately $261,000.
The Company also announces that it has received notice of termination from Exploración Río Placer S. A. de C. V. ("Rio Placer") regarding the option for the mining rights of the La Tuna property, located in northern Sinaloa State, Mexico. Rio Placer had agreed to pay US$3,220,000 plus applicable taxes over a 12 year period, subject to a 1% NSR royalty to VVC, to acquire 100% of the property. VVC will evaluate the property in early 2014, to decide on further exploration or marketing as a JV opportunity.
The Company's Financial Statements for the Third Quarter ended October 31st, 2013 and the Management's Discussion and Analysis for the same period have been filed on SEDAR and can be accessed at www.sedar.com.
About VVC Exploration Corporation
VVC is a Canadian exploration and mining company with projects in Mexico and Canada, which includes a near production copper prospect 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. VVC is aggressively seeking to convert its near production copper project, Samalayuca, to pilot scale production, then full production.
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 plans for the Samalayuca Copper Project.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. 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 the 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 efforts by Company will be successful. 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.