Vulcan Minerals Inc. Signs Definitive Sale Agreement for Offshore Labrador Interests
FOR: VULCAN MINERALS INC.
MAY 4, 2012 - 13:16 ET
ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - May 4, 2012) - Vulcan Minerals Inc. ("the Company")(TSX VENTURE:VUL) is pleased to announce that following upon a Term Sheet Agreement whereby the Company agreed to sell its 30% working interest in EL 1107 offshore Labrador, the Company and Investcan Energy Corporation, as purchaser, have finalized and signed a definitive purchase and sale agreement. Final closing is expected within 30 days subject to regulatory approval. As previously reported the consideration for the transaction is $1.75 million cash payment on closing and two potential success payments totaling an additional $1.0 million.
Commenting on the transaction, President Patrick Laracy said, "The monetization of the petroleum assets in Labrador along with our recent Bay St. George transaction in western Newfoundland means the Company will have in excess of $5.0 million working capital with no debt and reduced project commitments; thus, no need to finance the Company at the currently dilutive undervalued share price."
The closing of the previously announced Bay St. George transaction is expected next week. The Company has submitted a listing application with the TSX Venture Exchange in respect to its wholly owned subsidiary, Red Moon Potash Inc., whereby Vulcan proposes to provide the initial financing in order for Red Moon to get listed, carry out the pre-drilling phase of the proposed work program and provide necessary working capital. The Company and the Exchange are working through the details of this application.
The Company has been advised by NWest Energy Corp. that it has terminated the letter of intent with Caribe Oil and Gas Ltd. to amalgamate and pursue petroleum opportunities in Argentina. NWest maintains its royalty interests in approximately 500,000 acres of near shore lands prospective for Green Point Shale Oil in western Newfoundland and its securities interests in Shoal Point Energy Ltd. Shoal Point is currently carrying out a drilling and testing program on its Green Point Shale play at Port au Port in western Newfoundland. The Company owns 19% of the outstanding shares in NWest.
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.
Shares Issued: 57,526,129