TORONTO, April 27 /CNW Telbec/ - VVC EXPLORATION CORPORATION (VVC: TSX-V) (V7S: FSE / BBSE) ("VVC" or the "Company") announces that it is proceeding with the dissolution of its Tong Guan Joint Venture in China ("CJV") in concert with its chinese Joint Venture Partner. Our legal counsel in Beijing has advised us that a Plan of Dissolution has been approved by the local government and will take 2 to 3 to be finalized.
As previously announced, due to the divergence of opinion with its Joint Venture partner relating to the ongoing operations and future development of the CJV, the Company was uncertain about the future of the CJV. While the Company aggressively pursued a quick resolution to its differences with its Joint Venture partner, it had advised its shareholders of the negative impact that these differences could have on the Company. Since the beginning, revenues have been lower than anticipated and declined following the sale of the NQ512 vein. The Company decided to proceed with the dissolution, after it had completed evaluated its obligations to the CJV and concluded that it was no longer feasible for financial and business reasons to continue its relationship with the CJV. Declining production and revenues, increasing cost, lack of cooperation with our joint venture partners, fierce local competition for new production and exploration properties, unjustifiable high audit fees, accounting and supervision cost in light of gross revenues generated, all made its continuance unreasonable.
Realizing that its investment in Tong Guan in China was not generating the anticipated net revenues, the Company recognized an impairment loss and wrote-down its investment in Tong Guan as at the of year-end of January 31, 2007 and also in the 3-month periods ended July 31 and October 31, 2007. As the Company is unsure if any amount can be recovered, it was decided in consultation with its legal and financial advisors to completely write-off its Tong Guan Project.
The Company has been and will aggressively continue to pursue acquisitions of other mineral properties, especially Gold, Uranium and Antimony in Canada and elsewhere.
About VVC:
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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 Canada and in and around China. Visit our website at www.vvcexploration.com.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release.
On Behalf of the board of Directors
(Signed)
Michel J. Lafrance, Secretary-Treasurer