TORONTO, July 13 /CNW Telbec/ - VVC EXPLORATION CORPORATION (VVC: TSX-V) (V7S: FSE / BBSE) ("VVC" or the "Company") announces that it has terminated a previously signed Letter of Agreement to acquire five (5) uranium exploration properties (the "Properties") in the Ministikuchum Island area of the James Bay region of Northern Quebec which was previously announced.
In anticipation of the proposed acquisition, the Company commissioned an independent Qualified Person, Michel Boily, Ph.D., P. Geol, to prepare a National Instrument 43-101 Compliant Technical Report on the Properties, as required by the TSX Venture Exchange.
The potential of the Properties, as presented by Dr. Boily, is largely theoretical and based on trace element data. Boily had recommended "a vigorous grass root exploration program involving airborne radiometric, magnetometer and IMVLF surveys, soil sampling, prospecting with hand held scintillometers, and geological mapping" to be carried out this coming summer. This base data employed in arriving at this recommendation were generated during the mid-1970's by a consortia which included the Societe de Development de la Baie James (SDSJ), Seru Nucleaire and Eldorado Mining Inc., and were later acquired by the Ministere des Richesses Naturelles du Quebec. Each of these entities employ highly trained technical personnel and had the opportunity to analyse and utilize the accumulated data before it reached the public domain.
In view of the above facts, the estimated cost of the exploration proposed for this summer being almost $1 million, twice the contractual obligations for the first year, and the requirement to pay the vendor $200,000 and issue two (2) million common shares of the Company and one (1) million share purchase warrants at $0.45 per share for 2 years, the Company decided to terminate the agreement.
The technical aspects of this news release were reviewed by M.W. Rennick, P. Eng. (QP).
The Company is continuing its exploration activities and its search for new property acquisitions. The Company is also in excellent financial situation with $3.5 million in cash and liquid assets.
About VVC:
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VVC Exploration Corporation is a Canadian exploration company with projects in 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, Base metal, Uranium and Antimony 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
Michel J. Lafrance, Secretary-Treasurer