Vulcan Minerals Inc. (“the Company” TSX-V: VUL) is pleased to announce that it has acquired additional interest in three exploration permits at Parson’s Pond in western Newfoundland. The company has entered into an agreement with Deer lake Oil and Gas Inc. (Deer Lake) to purchase an 8% working interest in Exploration permits 03-101, 03-102 and 03-103 for consideration of $200,000. As well, the company acquires a right of first refusal on the remaining 2% working interest retained by Deer Lake in the permits.
The company has had a non-operating working interest in the Parson’s Pond area for several years and regards the area very prospective for a new petroleum discovery. Upon completion of the new acquisition, Vulcan will own a 26.57% working interest in EP03-101, a 15.39% working interest in EP03-102 and an 18% working interest in EP03-103. The permits are scheduled to expire by February 2010 unless discoveries are made by drilling prior to that time. The company plans to contribute to any drilling on this project in 2009. The company has entered into an agreement with a private company to fund this acquisition and pursue a possible joint venture in respect to the company’s participation in the Parson’s Pond project. Details will be provided when the joint venture arrangement is completed.
The Company also proposes to issue by way of a non-brokered private placement up to 640,000 flow-through common shares at a price of $0.25 per share for proceeds of $160,000. The funds will be used in the company’s ongoing exploration activities in western Newfoundland. No finders fee or commissions are payable. The placement is subject to TSX Venture Exchange approval.
Vulcan is a diversified junior exploration company focussed on petroleum exploration in the under-explored Western Newfoundland and Labrador area 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.