St. John’s – Newfoundland – Vulcan Minerals Inc. (“the Company” TSX-V: VUL) proposes to carry out a non-brokered private placement for proceeds of up to $1,000,000 by issuance of units at a price of $0.60 per unit, each unit consisting of one common share and one-half of a share purchase warrant. Each whole share purchase warrant will entitle the owner to purchase one common share of the company at $0.80 for a period of one year following the closing date. The proceeds of the offering will be used primarily for working capital with an allocation made towards an evaluation of the company ‘s potash and salt resource in western Newfoundland. Securities issued by way of the offering will be subject to a four month hold period. The company has agreed to pay a finder’s fee to PowerOne Capital Markets Limited which shall consist of a cash payment equal to 7% of the gross proceeds of the offering and warrants equal in number to 7% of the units sold in the offering to subscribers located by the finder. Each finder’s warrant shall be exercisable into one common share at a price of $0.80 for a period of one year after the closing date. The private placement is subject to approval of the TSX Venture Exchange.
The company also announces that an “escrow closing” of its agreement with Investcan Energy Corp. announced on February 28, 2008 has occurred. Final closing is subject to approval by the Minister of Natural Resources of the Province of Newfoundland and Labrador of the transfer of certain interests in the petroleum permits located onshore in the Bay St. George basin, western Newfoundland. The company has also received TSX Venture Exchange approval of the acquisition of gross-overriding royalties announced on February 28, 2008.
Vulcan is a diversified junior exploration company focussed on petroleum exploration in the under-explored Western Newfoundland area and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador.
For information please contact Mr. Patrick Laracy, President of Vulcan Minerals Inc. Phone: (709) 754-3186, Fax: (709) 754-3946, or Email:info@vulcanminerals.ca
The TSX Venture Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.