Vulcan Minerals Inc.

Vulcan Minerals Inc.

May 04, 2010 14:13 ET

Vulcan Minerals Inc. Closes $4.21 Million Private Placement

ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(Marketwire - May 4, 2010) - Vulcan Minerals Inc. ("the Company") (TSX VENTURE:VUL) announces that it has issued by way of brokered private placement, through Industrial Alliance Securities Inc., D&D Securities Inc. and Jennings Capital Inc., 2,537,500 units at $0.60 consisting of one common share and one half share purchase warrant. Each whole warrant will be exercisable into one common share at a price of $0.80 per share until November 3, 2011. The warrants are subject to an acceleration clause which allows the Company to accelerate the expiry date if the volume weighted average trading price of the shares exceeds $1.20 for 20 consecutive trading days. As well, 3,839,286 flow-through shares have been issued at $0.70 per share. Total proceeds of $4,210,000 will be used to fund the Company's ongoing exploration activities and to provide general working capital.

Commissions and finders fees in the amount of $294,700 and 318,839 broker warrants have been paid in respect to the financing. The broker warrants are exercisable at $0.80 until November 3, 2011 and subject to the acceleration provisions as described above. The shares will have a four month hold period (September 4, 2010) as per applicable securities law. The financing is subject to final TSX Venture Exchange approval. 

Vulcan is a diversified junior exploration company focused on petroleum exploration in the under-explored western Newfoundland and Labrador areas and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador.

There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors may also affect the actual results achieved by the Company.

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