VVC Announces New Private Placement Closing, Debt Conversion, Acquisition of Samalayuca Shares and Grant of Options

TORONTO, Sept. 28, 2020 (GLOBE NEWSWIRE) -- VVC Exploration Corporation ("VVC" or the "Company") (TSX-V:VVC) announces the following:

Q2 Financials

The Company's unaudited Financials for the Quarter Ended July 31, 2020 and the accompanying Management's Discussion and Analysis were filed on SEDAR on September 25 and will be uploaded to the Company's website.

Private Placement Financing

VVC has closed subscriptions on a non-brokered private placement of units of the Company at a price of CA$0.05 per Unit, whereby each Unit consists of one common share ("Share") and one common share purchase warrant ("Warrant") entitling the holder to purchase one additional Share of the Company for a period of three years from Closing, at an exercise price of CA$0.075 per share. Aggregate subscriptions amount to CA$2,876,310 (or US$2,177,000) representing 57,526,200 Units. One insider, the COB of the Company, subscribed for US$50,000. The Company will pay a Finder's Fee of US$52,150 to two arm's length finders, of which US$8,400 will be paid in cash and the balance will be settled by the issuance of 1,169,500 Shares and Warrants.

The Company expects to close the Private Placement on September 30, subject to the final acceptance of the TSXV. All securities to be issued pursuant to the offering will be subject to the applicable statutory, exchange and regulatory hold period of four months and any other required resale restrictions. The securities to be issued have not and will not be registered under the US Securities Act of 1933, as amended, or any state securities laws.

Net proceeds of the Financing, after paying the general costs of the issue and the cash portion of the Finder's Fee, will be used as needed for (a) development on the Kaity Property in Chihuahua, Mexico, including costs associated with various permits, metallurgical bench testing of the copper mineralization, and investigation, evaluation, planning and implementation of the Gloria Pilot Mining Project, (b) property option payments in Mexico, (c) reserve for future acquisitions, (d) current accounts payable, (e) general administrative expenses, and (f) working capital.

Debt Conversion

In conjunction with the Private Placement Financing, the Company is also settling an aggregate $91,205 of indebtedness by the issuance 1,824,100 Shares and 879,800 Warrants (collectively the "Units"). The Units being issued, the terms of the Warrants included in the Units and the applicable resale restrictions will the same as those for the Units issued through the Private Placement. One insider, the CEO of the Company is participating by converting $47,215 owed to him, however he will not receive any Warrants.