ST. JOHN'S, NEWFOUNDLAND -- (Marketwire) -- 11/27/09 -- Vulcan Minerals Inc. ("the Company" TSX VENTURE:VUL) announces that it has issued by way of brokered private placement, through D&D Securities Company and Jennings Capital Inc., 558,000 units at $0.55 consisting of one common share and one half share purchase warrant. Each whole warrant will be exercisable into one common share at a price of $0.75 per share until November 26, 2011. The warrants are subject to an acceleration clause which allows the Company to accelerate the expiry date if the volume weighted average trading price of the shares exceeds $1.40 for 20 consecutive trading days. As well, 2,389,154 flow-through shares have been issued at $0.65 per share. Total proceeds of $1,859,850 will be used to fund exploration and development activity in western Newfoundland and offshore Labrador and to provide general working capital.
Commissions and finders fees in the amount of $148,788 and 235,772 broker warrants have been paid in respect to the financing. The broker warrants are exercisable at $0.55 until November 26, 2011 and subject to the acceleration provisions as described above. The shares will have a four month hold period (March 27, 2010) as per applicable securities law. The financing is subject to final TSX Venture Exchange approval. This financing in combination with the $15 million Investcan Energy joint venture will permit the Company to meet its current drilling program at Bay St. George and the anticipated drilling program at Parsons Pond.
Vulcan is a diversified junior exploration company focused on petroleum exploration in the under-explored western Newfoundland and Labrador areas and also holds mineral interests in areas strategic to its operations 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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