TORONTO, Sept. 29, 2022 (GLOBE NEWSWIRE) — Following a successful annual meeting of shareholders, VVC Exploration Corporation, dba VVC Resources, (“VVC” or the “Company”), (TSX-V:VVC and OTCQB:VVCVF) announces the expansion of its helium and natural gas assets. Additionally, the Company’s mining division continues to grow with the addition of new copper and silica projects.
Supported by the aggressive growth of Proton Green, VVC has the opportunity to leverage its stake in the company to further fund its own strategic initiatives, including the continued development of the helium and natural gas business as well as plans to increase the production of the Gloria Copper project. This growth continues to create significant potential value for VVC and its investors.
“The amount of progress Proton Green has made over the past two years is nothing short of remarkable,” said VVC CEO Jim Culver. “VVC’s investment in Proton Green provides flexibility to our balance sheet and generally expands financing opportunities that will allow us to potentially grow our helium at a faster rate.”
“VVC’s expansion and acquisitions reflect our continued focus on resources of the future. I strongly believe that copper, helium and silica will remain scarce for the foreseeable future,” said Dr. Terrence Martell, Chairman of the Board of VVC.
Below is a summary of the Company’s recent activities. More information is available on our website at: https://www.vvcresources.com/presentations.
VVC’s Industrial Gases and Helium Asset Portfolio Continues to Expand
VVC’s helium strategy has been to build helium reserves by leasing mineral rights in proven oil and gas fields, primarily in Kansas and Colorado, in the North American helium belt. Each targeted lease has at least one well that has tested helium but has not been produced before. This target profile gives VVC more data on where to drill and more certainty about its ability to produce gas.
Over the past 18 months, VVC has acquired significant helium assets. As the company continues to lease as it completes several helium projects located in Kansas and Colorado, and will lease new projects on an opportunistic basis, the company’s goal is to quickly bring as many of its resources into production. as possible. The Company currently has six leased projects and lease continues on three other projects.
Proton Green holding company maintains aggressive growth
VVC owns around 14% of the energy transition company Proton Green. Proton Green is fast becoming one of North America’s leading helium producers and carbon sequestration centers. The Company is focused on green helium production, carbon sequestration and food grade carbon dioxide production.
Proton Green’s flagship project, St Johns, has a third-party geological resource of up to 33 billion cubic feet of helium in readily accessible reservoirs capable of producing one billion cubic feet of helium per year. While most helium is extracted from natural gas fields, the helium produced at St Johns is very unusual in that it does not contain any hydrocarbons. In addition to helium production, Proton Green has the capacity to inject 22 million tonnes of CO2 per year with a total storage capacity of more than one billion tonnes and benefit from tax credits linked to carbon capture.
VVC is leveraging its 14% stake in Proton Green to fund additional helium wells in the next phase of helium development at currently leased properties in Kansas, and possibly to fund other projects .
VVC adds copper and silica properties to its mining portfolio while preparing Gloria for production
Gloria Copper Project: VVC’s fully licensed, near-production copper project, Gloria, hosts copper oxide mineralization with a combined indicated and inferred copper resource of 184 million pounds, within less than a third of the known mineralization area . During the COVID shutdown, the team in Mexico improved processing methods which should allow a higher than expected percentage recovery for the copper, gold and silver found in the mineralized rock. Subject to obtaining sufficient financing, the Gloria project is now ready for pilot operation and can begin producing copper, gold and silver within 9 months of financing.
El Recreo and La Osa: VVC has filed claims for two potential copper and gold properties in Mexico in 2021, whose approvals are pending. El Recreo is a 2,000+ acre copper and gold property located near Mazatlan and La Osa is a 3,000 acre copper and gold property located in northern Sonora. These two properties would be exploration properties.
Silica: A new adventure for VVC – The Company has seen the value of silica increase in recent years, supported by the energy transition and is looking to seize this opportunity. VVC is exploring multiple avenues for silica production. Currently, waste rock from one of VVC’s current projects can be refined into 98% pure silica. Additionally, VVC filed a claim in North Sonora that contains over 90% pure, naturally occurring silica. The Company is also seeking to acquire additional claims in the western United States and has a target launch date for a silica division in 2023.
Amendment to the loan agreement
The previously announced short-term loan of US$1.25 million granted by the Chairman of the Board of Directors has been increased to US$1.5 million. The loan is due November 30, 2022, but will most likely be extended. The annual interest rate is based on the guaranteed overnight rate plus 2.75%. The loan is now secured by a 1% equity interest in the Company’s Proton Green investment.
The funds were used to pay off outstanding debts and complete Syracuse’s gas collection system.
About VVC Resources
VVC engages in the exploration, development and management of natural resources – specializing in rare and increasingly valuable materials needed to meet the growing, high-tech demands of industries such as manufacturing, technology, medicine, space travel and the growing green economy. Our portfolio includes a diverse set of high-growth, multi-asset projects, including: helium and industrial gas production in the western United States; copper and associated metals operations in northern Mexico; and Strategic investments in carbon sequestration and other green energy technologies. VVC is a Canadian company listed on the TSXV (TSX-V: VVC) and on the OTC market (OTCQB: VVCVF). To learn more, visit our website at: www.vvcresources.com.
|On behalf of the Board of Directors|
|Michel J. Lafrance, secretary-treasurer|
|For more information, please contact:|
|Patrick Fernet – (514) 631-2727||or Trevor Burbank – (214) 641-1041|
|E-mail: [email protected]||Email: [email protected]|
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This press release contains “forward-looking information” (within the meaning of applicable Canadian securities laws) and “forward-looking statements” (within the meaning of the US Private Securities Litigation Reform Act of 1995). These statements or information are identified by words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “potential”, “estimate”, “propose”, ” project”, “outlook”, “foresee” or similar words suggesting future results or statements about an outlook. These statements include, among others: continued development…; growth continues to create significant potential value; expands funding opportunities that will allow us to potentially grow; copper, helium and silica will remain rare in the near future; hire new projects on an opportunistic basis; is on the way to becoming one of the main producers of helium and…; leveraging its 14% stake in Proton Green to fund; a pilot operation and can start producing copper, gold and silver within 9 months of funding; exploring multiple avenues for silica production; also seeks to acquire additional claims in the western United States and has a target launch date for a silica division in 2023; loan maturing on November 30, 2022, but will most likely be extended; etc
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 acquisitions, helium production, future development and growth, plans and project completion through the Company’s third-party relationships, the availability of capital and the need to incur capital and other expenditures. . Actual results could differ materially due to a number of factors, including but not limited to, operational risks in the completion of the Company’s planned projects, delays or changes in plans regarding the development of the Company’s planned projects the Company through relations with third parties of the Company, risks related to Covid -19, risks affecting the ability to develop projects, risks related to legislative changes in applicable jurisdictions, risks inherent in operating in foreign jurisdictions, ability to attract key personnel, risk of falling helium and copper prices. No assurance can be given that the Company’s efforts will be successful.
Although the Company believes that any expectations reflected in any forward-looking information or statements are reasonable, prospective investors in the Company’s securities should not place undue reliance on any forward-looking statements, as the Company cannot guarantee that such expectations will prove to be correct. . The forward-looking information and statements contained in this press release speak as of the date of this press release, and the Company undertakes no obligation to update or revise such forward-looking information and statements, except as required by law.
Investors are cautioned that notwithstanding the expectations described herein, there can be no assurance that the plans described herein will be realized as proposed. Trading in the securities of VVC should be considered highly speculative. All forward-looking statements contained in this press release are expressly qualified in their entirety by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).