VVC Exploration Arranging Financing
TORONTO, ONTARIO--(Marketwired - Dec 16, 2013) - VVC Exploration Corp. ("VVC" or the "Company") (TSX VENTURE:VVC) announces having arranged a debt financing with Palos Merchant Fund LP. ("Palos") in the amount of $50,000 which bears interest at 15% per year and is secured by a Promissory Note and 5 million shares of the Company held by the Company's subsidiary, Camex Mining Development Group Inc. Palos is a significant shareholder of VVC holding 32,706,922 shares of the Company.
VVC is will use the proceeds to pay the land use rights and the mining right taxes on the Samalayuca Property in Mexico in order to maintain the claims in goodstanding.
The Company plans to repay the loan from the proceeds of an ongoing Private Placement Financing of up to $1 million representing 20 million units at a price of $0.05 per Unit. Each Unit consists of one common share and one common share purchase warrant (a "Warrant") of the Company. Each Warrant entitles the holder to purchase one additional common share of the Company at $0.12 per share for the first 3 years and at $0.18 for years 4 and 5. The net proceeds will be used to pay accounts payables, general corporate expenses, operating expenses in Mexico and maintenance fees on the Company's properties in Mexico.
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.
