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/C O R R E C T I O N from source -- VVC Exploration Corporation/
/C O R R E C T I O N from source -- VVC Exploration Corporation/.
About this update from Vvc Exploration Corporation
[{"type":"text","content":"\n\n\n\nPlease note that c2368 issued earlier today at 16:34e has been updated.\n\n\nRevised copy follows:\n\n\nVVC Exploration to dissolve Tong Guan CJV in China\n\n\nTORONTO, April 27 /CNW Telbec/ - VVC EXPLORATION CORPORATION (VVC: TSX-V)\n(V7S: FSE / BBSE) ("VVC" or the "Company") announces that it is proceeding\nwith the dissolution of its Tong Guan Joint Venture in China ("CJV") in\nconcert with its chinese Joint Venture Partner. Our legal counsel in Beijing\nhas advised us that a Plan of Dissolution has been approved by the local\ngovernment and will take 2 to 3 months to be finalized.\n\n\nAs previously announced, due to the divergence of opinion with its Joint\nVenture partner relating to the ongoing operations and future development of\nthe CJV, the Company was uncertain about the future of the CJV. While the\nCompany aggressively pursued a quick resolution to its differences with its\nJoint Venture partner, it had advised its shareholders of the negative impact\nthat these differences could have on the Company. Since the beginning,\nrevenues have been lower than anticipated and declined following the sale of\nthe NQ512 vein. The Company decided to proceed with the dissolution, after it\nhad completely evaluated its obligations to the CJV and concluded that it was\nno longer feasible for financial and business reasons to continue its\nrelationship with the CJV. Declining production and revenues, increasing cost,\nlack of cooperation with our joint venture partners, fierce local competition\nfor new production and exploration properties, unjustifiable high audit fees,\naccounting and supervision cost in light of gross revenues generated, all made\nits continuance unreasonable.\n\n\nRealizing that its investment in Tong Guan in China was not generating\nthe anticipated net revenues, the Company recognized an impairment loss and\nwrote-down its investment in Tong Guan as at the of year-end of January 31,\n2006 and also in the 3-month periods ended July 31 and October 31, 2006. As\nthe Company is unsure if any amount can be recovered, it was decided in\nconsultation with its legal and financial advisors to completely write-off its\nTong Guan Project.\n\n\nThe Company has been and will aggressively continue to pursue\nacquisitions of other mineral properties, especially Gold, Uranium and\nAntim...