TORONTO, May 7 /CNW Telbec/ - VVC EXPLORATION CORPORATION (VVC: TSX-V) (V7S: FSE / BBSE) ("VVC" or the "Company") announces that it has entered into a transaction to sell its remaining shares of Beaver Brook Antimony Mines Inc. ("BBAM"). The sale is subject to the acceptance of the TSX Venture Exchange ("TSXV"). Upon completion of the transaction, VVC will no longer hold shares of BBAM.
This transaction will net $3.5 million to the Company's Treasury. Upon closing, the Company will have cash and liquid investments totalling approximately $6.5 million. This cash will be mostly maintained in short term liquid investments except for those amounts required for current working capital and for ongoing exploration in the Timmins Area. If and as needed, the investments can be liquidated for acquisitions and exploration of other mineral properties when acquired.
The decision to sell was taken because VVC was a minority shareholder of BBAM and as such its balance sheet would not benefit from the start of production until BBAM was in position to pay dividends. Furthermore BBAM is a private company and there is no current public market for its shares and there may not be a public market for some time.
The Company is continuing to aggressively search for and evaluate new mineral properties of gold and/or base metals. Shareholders will be advised of any developments on this front.
"With $6.5 million of available cash, and practically no debt, VVC is in a fantastic position to acquire new mineral projects to maximize shareholder value" says Mr. Daniel Grenier, President and CEO.
About VVC:
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VVC Exploration Corporation is a Canadian exploration company with projects in the Timmins Area, Ontario, Canada. VVC also has an indirect participation in the Beaver Brook Antimony Mine in Newfoundland, Canada. VVC is also aggressively searching for other projects such as gold and/or base metals at various stages of development. Visit our website at www.vvcexploration.com.
The TSXV has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.
On Behalf of the board of Directors
(signature)
Michel J. Lafrance, Secretary-Treasurer