VVC's Helium Projects and Proton Green, Continue to Fuel Company's Growth
TORONTO, Sept. 29, 2022 (GLOBE NEWSWIRE) -- Following a successful Annual Shareholders Meeting, 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.
Bolstered by Proton Green’s aggressive growth, VVC has the opportunity to leverage its shares in the company to further fund its own strategic initiatives, including continued development of the helium and natural gas business as well as plans to increase production at the Gloria Copper Project. This growth continues to create significant potential value for VVC and its investors.
"The amount of progress Proton Green has achieved over the past two years is nothing short of remarkable," said VVC CEO, Jim Culver. "VVC’s investment into Proton Green provides flexibility to our balance sheet and generally expands financing opportunities that will enable 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 firmly believe copper, helium, and silica will remain in short supply in the near future," said Dr. Terrence Martell, Chairman of the VVC Board.
Below is a summary on the Company’s recent activities. More information is available from our website at: https://www.vvcresources.com/presentations.
VVC’s Portfolio of Helium and Industrial Gas Assets 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 was not previously produced. This target profile gives VVC more data on where to drill and more certainty in its ability to produce gas.
In the last 18 months, VVC has acquired substantial helium assets. While the Company continues its leasing as it rounds out multiple helium projects located in Kansas and Colorado, and will lease new projects on an opportunistic basis, the focus of the Company is getting as much of its resource as possible into production quickly. The Company currently has six projects leased with leasing continuing in three other projects.
Portfolio Company Proton Green Maintains its Aggressive Growth
VVC owns approximately 14% of the energy transition company Proton Green. Proton Green is poised to become one of the leading helium producers and carbon sequestration hubs in North America. The Company focuses on green helium production, carbon sequestration, and food grade carbon dioxide production.
Proton Green’s focus project, St Johns, has a third-party geological resource of up to 33 billion cubic feet of helium in easily accessible reservoirs capable of producing one billion cubic feet of helium per year. While most helium is extracted from natural gas deposits, the helium produced at St Johns is highly unusual in that it does not contain any hydrocarbons. In addition to the helium production, Proton Green has the ability to inject 22 million metric tons of CO2 per year with a total storage capacity of over one billion metric tons and take advantage of the tax credits associated with carbon capture.
VVC is in the process of leveraging its 14% ownership of Proton Green to finance the additional helium wells in the next phase of the helium development in currently leased Kansas properties, and possibly to finance other projects.
VVC Adds Copper and Silica Properties to its Mining Portfolio While Preparing Gloria for Production
Gloria Copper Project: VVC’s fully permitted, near-production copper project, Gloria, hosts oxide copper mineralization with a combination of indicated and inferred copper resource of 184 million pounds, in less than 1/3 of the known mineralization zone. During the shutdown due to COVID, the team in Mexico enhanced the processing methods which is expected to yield a higher percentage recovery than previously expected for copper, gold and silver found in the mineralized rock. Contingent on securing sufficient financing, the Gloria Project is now ready for pilot mining and can begin producing copper, gold, and silver within 9 months of financing.
El Recreo and La Osa: VVC filed claims for two prospective copper and gold properties in Mexico in 2021, which 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. Both of these would be exploration properties.
Silica: A new venture for VVC - The Company has seen the value of silica rise in recent years bolstered by the energy transition and looks to take advantage of 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. In addition, VVC has filed a claim in northern Sonora that contains naturally occurring 90%+ pure silica. The Company is also looking to acquire additional claims in the western US and has a target launch date for a silica division in 2023.
Amendment to Loan Agreement
The previously announced short-term loan of US$1.25 million provided by the Chairman of the Board of Directors was increased to US$1.5 million. The loan is due on November 30, 2022, but will most likely be extended. The annual interest rate is based on the Secured Overnight Financing Rate plus 2.75%. The loan is now secured by a 1% interest in the Company's Proton Green investment.
The funds were used to pay outstanding liabilities and complete the Syracuse gas gathering system.
About VVC Resources
VVC engages in the exploration, development, and management of natural resources - specializing in scarce and increasingly valuable materials needed to meet the growing, high-tech demands of industries such as manufacturing, technology, medicine, space travel, and the expanding green economy. Our portfolio includes a diverse set of multi-asset, high-growth projects, comprising: Helium & industrial gas production in western U.S.; Copper & associated metals operations in northern Mexico; and Strategic investments in carbon sequestration and other green energy technologies. VVC is a Canada-based, publicly-traded company 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 further information, please contact: | |
| Patrick Fernet - (514) 631-2727 | or Trevor Burbank - (214) 641-1041 |
| E-mail: pfernet@vvcexploration.com | E-mail: trevor@vvcexpl.com |
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FORWARD LOOKING STATEMENTS:
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: continued development ...; growth continues to create significant potential value; expands financing opportunities that will enable us to potentially grow; copper, helium, and silica will remain in short supply in the near future; will lease new projects on an opportunistic basis; is poised to become one of the leading helium producers and ...; in the process of leveraging its 14% ownership of Proton Green to finance; pilot mining and can begin producing copper, gold, and silver within 9 months of financing; exploring multiple avenues for silica production; also looking to acquire additional claims in the western US and has a target launch date for a silica division in 2023; loan due 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, production of helium, future development and 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, 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 related to Covid-19, risks affecting the ability to develop projects, risks in legislative changes in the applicable jurisdictions, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, risks in decrease of price of helium and copper. No assurances can be given that the efforts by Company will be successful.
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.
Investors are cautioned that notwithstanding the expectations described herein, there can be no assurance that the plans described herein will be completed 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).
