VVC Exploration Corporation

VVC Exploration Corporation

November 13, 2013 16:07 ET

VVC Exploration Provides Mexican Projects Update

TORONTO, ONTARIO--(Marketwired - Nov. 13, 2013) - VVC Exploration Corporation (TSX VENTURE:VVC) ("VVC" or the "Company") is pleased to provide an update on its prospects following the completion of the Camex acquisition as we approach the end of 2013 and prepare for 2014:

  • Early in 2013, VVC completed a $985,000 private placement financing which allowed VVC to advance the exploration of the Cumeral Property, pay property option payments and outstanding bills, complete the acquisition of Camex, and operate VVC for the first 3 quarters 2013.
  • The highlight of 2013 for VVC was the completion of the acquisition of Camex and its Mexican properties. With this acquisition, VVC now owns an interest in Samalayuca's Kaity claims (over the "Samalayuca Copper Project"), a near-production copper deposit, and the Escondida Property, an early stage silver/gold property which shows good silver and gold values from surface sampling and has an epithermal, low to intermediate sulphidation system. For more information on the Samalayuca and Escondida Properties, see the 43-101 Reports filed on SEDAR.
  • The Company also owns the Cumeral Property in northern Mexico, an advanced exploration gold project that has the potential to host an open pit gold deposit which has been VVC's focus in Mexico prior to the Camex acquisition.

VVC is focusing its efforts on production from the Samalayuca Copper Project. We anticipate, if everything is on schedule, the following developments:

  • Samalayuca is working with an environmental law firm to receive authorization from CONANP and SEMARNAT (Mexican government groups responsible for the environment) for the environmental and mining permits. The Project is supported by the local community in this process.
  • Samalayuca is on track to start mine preparation work in early 2014.
  • A Mexican company, specializing in construction and operation of open pit mining projects, Firex S.A. de C.V., has signed a contract with Samalayuca to manage the mining process and provide up to $7 million in start-up loans to Samalayuca.
  • Some previously mined low grade material is available on site for the first heap leach pad planned for early to mid-summer, 2014 to test and fine tune the heap leach system.
  • The first material mined by Samalayuca is planned for a heap leach pad in mid to late summer 2014.
  • If all goes as planned, the first revenues could be received in August or September, 2014.
  • Please note that a feasibility study has not been completed and there is no certainty that the proposed operation will be economically viable.

VVC's responsibility and proposed plans are:

  • Provide funds to pay for the management, permits, and exploration at Samalayuca.
  • Negotiate a $3-$5 million loan facility backed by production of Samalayuca. Management has begun initial discussions with 4 potential lenders.
  • Once production begins, VVC may consider entering into a copper forward sale facility, as needed to bridge the time between start-up and cash flow positive for Samalayuca.

VVC is in the process of raising financing through a private placement, the details of which will be announced in due course.

About VVC Exploration Corporation

VVC is a Canadian exploration and mining company with projects in Mexico and Canada, which includes a near production copper prospect in Chihuahua State, and gold and silver prospects in Sonora and Sinaloa States, Mexico. The Company also has a grassroots gold/VMS prospect in the Timmins area of northern Ontario. VVC is aggressively seeking to convert its near production copper project, Samalayuca, to pilot scale production, then full production.

On behalf of the Board of Directors

Michel J. Lafrance, Secretary-Treasurer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated plans for developments on the Samalayuca Copper Project".

Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding future growth, plans for and completion of projects by Company's third party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of Company's anticipated projects by Company's third party relationships, risks affecting the ability to develop projects, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional capital. No assurances can be given that the efforts by Company will be successful. Additional assumptions and risks are set out in detail in the Company's MD&A, available on SEDAR at www.sedar.com.

Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.

Contact Information