Vulcan Minerals Inc.: Corporate Update
March 15 2012 - 2:37PM
Marketwired
Vulcan Minerals Inc. ("the Company") (TSX VENTURE:VUL) is pleased
to provide the following update on its activities:
Bay St. George Petroleum:
Following upon a Term Sheet agreement whereby the Company will
convert its working interest in the three onshore petroleum permits
in western Newfoundland to a 2% royalty and a $2.5 million payment,
the Company and Investcan Energy Corporation (Investcan) have
finalized and signed a definitive Purchase and Sale agreement.
Final closing of the transaction is expected within 60 days. As
part of the agreement, Vulcan maintains full co-ownership rights to
all technical information and data to explore for minerals under
the petroleum permits and for any purpose outside the permits
subject to certain industry standard confidentiality
requirements.
Red Moon Potash Inc.:
The distribution of Red Moon shares, as per the shareholder
approved plan of arrangement, will occur upon final listing
approval from the TSX Venture Exchange. A financing is required to
facilitate this listing of common shares for trading on the
exchange. The Company continues to have discussions with potential
financing sources for Red Moon. In the opinion of management,
Vulcan's capital value is currently undervalued in the weak equity
market and as a result the valuation for Red Moon shares pursuant
to any financing would be undervalued in current market conditions.
As a result, management is reviewing the merits of having Vulcan
provide the minimum financing for Red Moon as per the plan of
arrangement in order to get Red Moon listed and active on its
exploration plan. As a result, Vulcan would maintain a
proportionately larger equity stake in Red Moon. A larger follow-up
financing would be carried out in the context of the market over
the next few months in order to maintain a drilling program for
late summer/fall on the potash targets. Managements' final decision
on the Red Moon financing plan is expected shortly after regulatory
and legal review. In the interim, the Company continues to carry
out geoscientific work on the property. The Company has received
the final results from the high resolution airborne gravity survey.
Interpretation and integration with existing data sets is underway
towards prioritizing drill targets for potash and salt.
Labrador:
The seismic survey on EL 1107 offshore Hopedale basin in
Labrador has been evaluated with enhanced processing techniques
towards better definition of potential petroleum traps and direct
hydrocarbon indicators. Efforts to market the exploration and
drilling opportunities on EL 1107 have commenced. The licence is
situated between two significant gas discoveries and was issued on
November 15, 2008. Its initial Period I is due to expire within six
years of issuance whereby if a well is drilled in that Period I the
licence is extended for an additional three year term. The Company
currently owns a 30% working interest in EL 1107. The remaining 70%
working interest and operatorship is held by Investcan.
NWest Energy Corp.:
The Company has been advised by NWest Energy Corp. (NWest) that
it has entered into a non-binding letter of intent with Caribe Oil
and Gas Ltd., (Caribe) a private Alberta corporation focused on
exploration and development of oil and gas proprieties in
Argentina, pursuant to which NWest will amalgamate with Caribe to
form a new company. It is intended that the experienced management
team of Caribe will assume the key management positions in the new
company. The closing of the transaction is subject to several
conditions including regulatory and due diligence reviews and the
completion a $20,000,000 financing at a price to be determined in
the context of the market. For a full description of the proposed
transaction, please refer to a news release issued by NWest on
March 5, 2012 and posted on their website www.nwestenergy.com. The
company owns 1,796,437 shares of the currently outstanding
9,474,192 shares in NWest. NWest shares have been halted from
trading on the TSX Venture Exchange pending receipt and review of
acceptable documentation by the Exchange in respect to the proposed
transaction. The Company has a positive view on the proposed
transaction given the renewed exploration and market interest in
the conventional and unconventional oil and gas opportunities in
Argentina.
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.
Shares Issued: 57,526,129
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.
Contacts: Vulcan Minerals Inc. Patrick J. Laracy, President
Gerri A. MacNeil, Business Manager, Investor Relations
709-754-3186info@vulcanminerals.ca www.vulcanminerals.ca