VVC Exploration Announces Signing of a $4 Million Loan Facility Term Sheet
29 Janeiro 2014 - 6:27PM
Marketwired
VVC Exploration Announces Signing of a $4 Million Loan Facility
Term Sheet
TORONTO, ONTARIO--(Marketwired - Jan 29, 2014) - VVC Exploration
Corporation ("VVC" or the "Company") (TSX-VENTURE:VVC) is pleased
to announce that as a part of a potential debt financing effort
discussed in a December 30, 2013 press release, it has received and
signed a Termsheet between Aeris Trading Corp. (a Joint Venture
Company between Alexander Capital Equity Group ("ACE") and Alpha
Trading LLC.), and Camex Mining Development Group Inc. ("Camex"), a
wholly owned subsidiary of VVC Exploration Corporation.
This $4 million term sheet, proposes a two part loan facility.
First, a $2 million tranche to be available for drawdown by the end
of February, and second, a further $2 million upon the receipt of
all mining permits on the Company's 33% VVC owned Samalayuca Copper
Project.
The loan is focused on the startup of production at the
Samalayuca Copper Project which is 33% owned by Camex, and may also
be used for the corporate operations of Camex and VVC.
James A. Culver, President of VVC and Camex, commented: "We are
very excited to receive this term sheet, and expect to begin
working on loan documentation with Aeris this week. We have had
numerous discussions with ACE and are pleased to have an
opportunity to work with one of their companies and with their
trading partner, Alpha Trading Inc."
Proposed Loan Terms are as follows:
- A total loan facility of US$4.0 million, with at least $500,000
to be advanced at the end of February 2104 and the balance at
regular intervals over 12 months.
- Repayment will occur from 50% of any cash flow that Camex may
receive from its Samalayuca Copper Project, and, in any case, must
be completely repaid within 5 years from the date of the first
disbursement.
- The loan will be secured by half of Camex's ownership of its
Samalayuca Copper Project in Chihuahua, Mexico.
- Outstanding principal shall bear an interest rate of 12% per
annum.
- A bonus of 1 million common shares of VVC (priced at $0.05 per
share) and 2 million common share purchase warrants ("Warrant(s)")
will be issued for each $500,000 drawdown of the loan facility, up
to a maximum of 8 million shares and 16 million Warrants, if the
full $4 million loan facility is utilized. Each Warrant entitles the
holder to purchase one additional common share of the Company at
$0.08 per share for a period of 5 years.
Finders fees of 2% of the aggregate amount of the loan may be
payable to persons, at arms' length to the Lender, Camex and VVC,
who are instrumental in arranging the closing of this facility,
payable on each draw-down.
The terms of this loan will require the approval of the TSX
Venture Exchange ("TSXV"). The Company has filed the details of the
offer with the TSXV and will seek approval of final loan
documentation. Investors are cautioned that there can be no
assurance that the Loan will be completed or, if it is completed,
that it will be on the terms as disclosed herein. VVC will announce
the status of the Loan including, if and when definitive loan
documentation is entered into, in further press releases.
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 to secure a loan for 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.
VVC Exploration CorporationSerge Cadorette(514)
361-0749scadorette@vvcexploration.com
VVC Exploration (TSXV:VVC)
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