TORONTO, Dec. 7 /CNW Telbec/ - VVC EXPLORATION CORPORATION ("VVC" or the "Company") announces that it has finalized a non-brokered private placement at 30 cents per unit with total subscriptions amounting to $507,000 for 1,690,000 units. Each unit comprises one common share and one share-purchase warrant to purchase an additional share at $0.50 until December 7th, 2008. The net proceeds after will be used for working capital, reduction of accounts payable, exploration of properties in Canada, ongoing search for new properties in Canada and abroad and engaging an independent Qualified Person to review new projects under consideration. The shares will be subject to resale restrictions for four months. The Private Placement has not yet been accepted for filing by the TSX Venture Exchange. Insiders of the Company subscribed to this private placement for an aggregate of 280,000 units at a cost of $84,000, representing 16.6% of the total placement. An aggregate of $32,259 in cash and 33,470 shares will be paid as Finders' fees to persons instrumental in arranging the placement.
The Company is continuing to search for and evaluate new resource projects in and around China. VVC is currently evaluating several different World class projects in Western China. M. Pierre Thibault, VP Exploration, has been in the field for the last 2 months evaluating appropriate properties for VVC and it's shareholders. The well-renowned geological and mining consulting firm, Scott Wilson Roscoe Postle & Associates, is assisting VVC in accessing the merits of such properties. Any developments on this front will be announced on a timely basis.
VVC also announces that it has signed Sale and Purchases Agreements to acquire 100% interest in 2 grass-roots exploration properties in the townships of Playfair and Grenfell, located about 80 km east-southeast of Timmins, in the Abitibi Greenstone Belt of Northern Ontario. The consideration for the purchase is the issuance of 225,000 common shares of the Company and the retention by the vendor of a 3% net smelter return. The Company intends to carry-out preliminary exploration on the properties this winter at an estimated cost of about $30,000. In addition, the Company has also signed Property Option Agreements whereby the Company could acquire, in the same area, 3 other grass-roots exploration properties in Playfair, Black, Benoit and Maisonville Townships, in consideration for 200,000 common shares of the Company per property, a commitment to carry-out within the year, sufficient exploration work for an additional year of assessment work and the retention by the vendor of a 3% net smelter return. The Property Acquisitions and the Property Options have not yet been accepted for filing by the TSX Venture Exchange.
For more information on the Company, please consult the public documents filed on SEDAR at www.sedar.com.
About VVC:
VVC Exploration Corporation is a Canadian exploration company with projects in Canada and China. VVC also has an indirect participation in the Beaver Brook Antimony Mine in Newfoundland, Canada and is aggressively searching for other projects in and around China. Please visit our Website at www.vvcexploration.com.
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or accuracy of this news release.
On Behalf of the board of Directors
(INSERT SIGNATURE)
Michel J. Lafrance, Secretary-Treasurer