Stock Symbol: TSX: VUL
Shares issued: 28,610,884
ST. JOHN'S, NL, Dec. 14 /CNW/ - Vulcan Minerals Inc. ("the Company"
TSX-V: VUL), is pleased to announce the following:
Financing
---------
The Company proposes to do a brokered $1.5 million dollar financing
consisting of up to 1,428,570 common share units at a price of $0.35 each unit
consisting of one common share and one-half common share purchase warrant. One
whole warrant is exercisable in to one common share at a price of $0.50 per
share for a period of eighteen months. Also, up to 2,500,000 flow-through
units at a price of $0.40 per unit each flow-through consisting of one common
share on a flow-through basis and one-half of a common share purchase warrant.
One whole warrant is exercisable into one common share (non-flow-through) at a
price of $0.60 per share for 18 months. Dominick and Dominick Securities Inc.
will act as lead agent together with Jennings Capital Inc. and Acadian
Securities Incorporated as co-agents on a best efforts basis. A cash
commission of 7% plus broker warrants amounting to 10% of the total units sold
is payable to the agents. The broker warrants will be exercisable at $0.50 for
a period of 12 months. The proceeds are to be used for the Company's ongoing
exploration program and working capital. The financing is subject to TSX
Venture Exchange approval.
2005 Drilling Program Completed
-------------------------------
The Company also announces completion of its 2005 drilling program. The
Company drilled four wells in the Bay St. George Basin, Western Newfoundland.
The most recent well, Hurricane No. 2, has been drilled to total depth of 935m
and logged. No commercial hydrocarbons were encountered, although numerous oil
shows in the form of cut fluorescence in drill cuttings were encountered over
several intervals totally 255 metres. Once again it demonstrates the presence
of an active petroleum system in the area. The Hurricane No. 2 well location
did not penetrate the evaporite cap rock encountered in Hurricane No. 1 rather
it targeted a seismically anomalous package interpreted to contain a separate
cap rock. The anomaly did not contain a cap rock which negated its trapping
potential. This stratigraphic sequence of rocks was drilled for the first time
and provides invaluable information for future exploration of the area.
Vulcan's 2005 program in this new basin has demonstrated an active
petroleum system extending at least 20 kilometres from the shallow Flat Bay
oil discovery in the north to the Hurricane Structure in the south. The
addition of new seismic data and airborne magnetic data will assist in the
delineation of the Flat Bay oil deposit through the identification of natural
fracturing and reservoir enhancement. Plans for 2006 will include further
drilling at Flat Bay including identification of a gas discovery made by
mining operations in the 1950's (News Release, Oct. 28, 2005). As well, the
Company has identified a series of deeper targets (beyond 1000 metres) that
will require drill testing. It is the Company's intent to solicit partners to
assist in the drilling of these targets. Several shallow (less than 1000
metres) targets outside the Flat Bay deposit also remain to be tested.
The Company is proud of its accomplishments for 2005 as an operator and
driller in a frontier area. The drilling rig and the local drilling crew
performed very well, allowing the Company to complete its program in a timely
fashion and on a cost effective basis.
Vulcan is a junior exploration company focussed on exploring for
petroleum in Western Newfoundland both onshore and offshore. The Company also
owns petroleum rights over an area prospective for coalbed methane in Western
Newfoundland. As well, the Company owns mineral rights to a nickel/copper
discovery in Labrador and a gold prospect in Central Newfoundland. Both
mineral projects have been optioned out to Nortec Ventures Corp.
The TSX Venture Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00003997E
