Stock Symbol: TSX: VUL
Shares issued: 43,364,301
VULCAN MINERALS INC. – Kingurutik River Option Agreement Approved/Tasisuak Lake Drilling Scheduled/Options Proposed
St. John’s – Newfoundland – Vulcan Minerals Inc. (“the Company” TSX-V: VUL) is pleased to announce that it has been advised by Nortec Ventures Corp. (Nortec) that it has received TSX Venture Exchange Approval for the Kingurutik River option agreement.
The option agreement dated March 31, 2008, between Nortec Ventures Corp. and Vulcan Minerals Inc. (Vulcan) allows Nortec to acquire an initial 51-per-cent interest in the Kingurutik River, nickel-copper property located in northern Labrador.
Total consideration for the initial option consists of $200,000 in cash payments, three million shares of Nortec and $1.5-million in work expenditures over four (4) years. Nortec may acquire the remaining 49-per-cent interest in the Kingurutik River property by fully exercising its initial option and issuing the greater of nine million additional shares, or an amount of shares, when added to the three million previously issued shares, would equal 19.9 per cent of Nortec’s fully diluted share capital (including the additional shares to be issued to exercise the second option) at the time of exercise of the option attributable to the value of the property in relation to Nortec’s total value. The proposed issuance of these additional shares is subject to an additional filing and prior exchange approval. In addition to the above, there is a 10-per-cent net profit interest convertible into a 2-per-cent net smelter return royalty relating to the acquisition.
Nortec has completed a technical report authored by a Qualified Person in compliance with National Instrument 43-101 guidelines on the Kingurutik River Property as required by TSX Venture regulations. A recent VTEM survey (airborne electromagnetic) was carried out by Geotech Ltd. designed to delineate previously identified gossan zones and geophysical anomalies. Detailed interpretation of the VTEM data with emphasis on identifying priority targets for drilling is being carried out by Geotech.
The company is also advised that Nortec has signed a contract for 2500 metres of diamond core drilling on the TL-Tasisuak Lake Nickel-Copper-Cobalt property situated approximately 50 kilometers northwest of the Voisey Bay mine in northern Labrador. Drilling is expected to commence within two weeks.
The company also wishes to report it has issued 950,000 incentive stock options to Directors, Officers and employees exercisable at a price of $1.00 for a period of 5 years subject to TSX Venture Exchange approval. The company has reserved 4,336,430 shares pursuant to its stock option plan of which 3,625,000 have been granted including the grant described herein.
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.
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.