ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - April 16, 2012) - Vulcan Minerals Inc. ("the Company")(TSX VENTURE:VUL) is pleased to announce that it has entered into a Term Sheet agreement with its partner Investcan Energy Corporation (Investcan) to sell its 30% working interest in exploration licence 1107 offshore Labrador for a cash payment of $1.75 million on closing and "success" payments of $500,000 upon the spudding of a well on the exploration licence or the sale by Investcan of its total interest in the licence whichever comes first and a further $500,000 upon the issuance of any significant discovery licence contained within the exploration licence. The parties will work towards finalizing a purchase and sale agreement with an expected final closing within 60-90 days subject to regulatory approvals.
Commenting on the transaction, President Patrick Laracy said, "The deal comes at an opportune time for Vulcan as we secure additional cash for the company while refocusing our activities. At the same time we are reducing our ongoing costs associated with this project yet maintaining exposure to certain exploration milestones through the success payments."
Vulcan acquired its interests through a joint venture with Investcan in 2008. Exploration licence 1107 has an initial Period I of six years expiring in November 2014. If a well is drilled in Period I the licence is extended into Period II for an additional 3 years to a maximum 9 year term. If a discovery is made on the licence a significant discovery licence may be issued.
Vulcan is a diversified junior exploration company with petroleum and mineral exploration interests in Newfoundland and Labrador.
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.
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.
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