Vulcan Minerals Inc. (“the Company” TSX-V: VUL) is pleased to report that it has entered into an earn-in agreement with Investcan Energy Corporation (Investcan) in regards to Exploration Licence EL1107, offshore Labrador. Pursuant to the agreement Investcan has the right to earn a 20% working interest from Vulcan in EL1107 by solely funding 100% of the costs of a 2D seismic survey on the license to a limit of $8.2 million on or before December 01, 2010. The proposed seismic program is subject to obtaining certain regulatory approvals before proceeding.
EL1107 was issued in November 15, 2008 to Vulcan and Investcan on a 50/50 working interest basis. The companies have formed a joint venture to explore and add value to the licence towards attracting a drilling partner. An exploration license confers the right to explore for petroleum for an initial Period I of six years with a possible additional period of three years. EL1107 covers 236,525 hectares (584,000 acres) of the Hopedale Basin on the Labrador continental shelf. It is situated adjacent to and on trend between the Bjarni-North Bjarni discoveries (approximately 3.1 trillion cubic feet of natural gas) to the northwest and the Gudrid discovery (approximately 924 billion cubic feet of natural gas) to the southeast. The gas quantities of the Bjarni-North Bjarni and Gudrid discoveries are recoverable resources as published by the Canada-Newfoundland and Labrador Offshore Petroleum Board.
Investcan is a private corporation indirectly owned by SCDM, a private company based in Paris, France and controlled by Martin and Olivier Bouygues. SCDM is one of the largest shareholders of the Bouygues Group at 18.6% as of December 31, 2009 (www.bouygues.com). Vulcan and Investcan currently have a joint venture for exploration of the Bay St. George basin in western Newfoundland. Completion and testing of two wildcat wells on that project are to commence shortly.
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.
