VG:CC - Volcanic Presents Update on Plans for Guatemala and Proposes Extension of Previously Issued Share Purchase Warrants
(TheNewswire)
News Release
Shares issued 45,551,210
VG Close - C$0.23
W/C +$6.5 Million cash
Vancouver, British Columbia – TheNewswire – July 18 th , 2022 - Volcanic Gold Mines Inc. (TSXV:VG), (OTC:VLMZF) (‘Volcanic’ or ‘the Company’) ispleased to provide an update on plans for Guatemala and proposes anextension of previously issued share purchase warrants.
Following the publication of the inferred resource ( news release June 9, 2022 )on the La Pena vein system at the Holly property, the decision hasbeen made to focus on obtaining the exploitation license for thedeposit discovered before returning the drill rig to the property togrow the resource.
“This we believe is the correct conservative approach,” statesSimon Ridgway, President and CEO of Volcanic. “Bluestone’s CerroBlanco gold deposit to our south is still pending permitting, andwhile I am confident we will see that happen before this year is out,we want to see that strong endorsement for mining in this area ofGuatemala. In the meantime, we will complete the studies needed toobtain an exploitation licence for the Holly property, and workclosely with the local communities now that we are in a position tooutline the benefits of the high grade gold discovery to allstakeholders.”
In other areas of the country Volcanic has been busy evaluatingtargets identified by the data base of Radius Gold Inc. with someexceptionally strong results being returned from a number of targetareas, especially to the north in the Motagua Fault Zone. TheCompany is in discussion with Radius to potentially enter into optionagreements on some of these concession applications and we are pushingto get these concessions granted by the Ministry of Energy and Minesof Guatemala. We expect to have an update on this in the nearfuture.
The Company also announces that management has determined the Company should extend theexpiry date of certain common share purchase warrants exercisable at$0.30 per share which were issued in July 2020 pursuant to theCompany’s private placement financing. Accordingly, subject to TSXVenture Exchange acceptance, the expiry date of 8,813,500 outstandingwarrants will be extended by one year, from July 26, 2022 to July 26,2023. The Company presently has a strong cash position.
Terms of Guatemala Radius Gold andVolcanic Gold Mines option
Pursuant to an option agreement signedin May 2020 with Radius Gold Inc. (TSXV: RDU), Volcanic can earn a 60%interest in the Holly and Banderas projects by spending the cumulativeamount of US$7.0 million on exploration of the properties within 48months from the date of the agreement. In accordance with the Optionterms, Volcanic spent an initial US$1M on exploration within the 12months of receiving the required drill permits, which expendituresincluded a minimum 3,000m of drilling on the properties.
Following the exercise of the Option, Volcanic will enter into astandard 60/40 Joint Venture in order to further develop theProperties. Volcanic has also been granted an exclusive right toevaluate all other property interests of Radius in Guatemala with aright to acquire an interest in any or all other such properties onreasonable terms.
Volcanic brings together an experienced and successfulmining, exploration and capital markets team focused on building multi-million -ounce gold and silver resources in underexplored countries. Through the strategic acquisition of mineral properties withdemonstrated potential for hosting gold and silver resources, and byundertaking effective exploration and drill programs, Volcanic intendsto become a leading gold-silver company.
For further information, visit our website at www.volgold.com .
Volcanic Gold Mines Inc.
Simon Ridgway, President and CEO
Neither the TSX Venture Exchange nor the InvestmentIndustry Regulatory Organization of Canada accepts responsibility forthe adequacy or accuracy of this release.
Forward-looking statements
Certain statements contained in this news releaseconstitute forward-looking statements within the meaning of Canadiansecurities legislation. All statements includedherein, other than statements of historical fact, are forward- lookingstatements and include, without limitation, statements about theCompany’s plans for its properties and the proposed warrantextension. Often, but not always, these forward looking statements canbe identified by the use of words such as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”,“gain”, “upgraded”, “offset”, “limited”,“contained”, “reflecting”, “containing”, “remaining”,“to be”, “periodically”, or statements that events,“could” or “should” occur or be achieved and similarexpressions, including negative variations.
Forward-looking statements involve known and unknownrisks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company to be materially different from any results, performance or achievementsexpressed or implied by forward-looking statements. Such uncertaintiesand factors include, among others, whether the Company’s plans forits properties will proceed and the proposed warrant extension will becompleted as intended; changes in general economic conditions andfinancial markets; the Company or any joint venture partner not havingthe financial ability to meet its exploration and development goals;risks associated with the results of exploration and developmentactivities, estimation of mineral resources and the geology, grade andcontinuity of mineral deposits; unanticipated costs andexpenses; and such other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulators andavailable under the Company’s profile on SEDAR at www.sedar.com. Although the Companyhas attempted to identify important factors that could cause actualactions, events or results to differ materially from those describedin forward-looking statements, there may be other factors that causeactions, events or results to differ from those anticipated, estimatedor intended.
Forward-looking statements contained herein are basedon the assumptions, beliefs, expectations and opinions ofmanagement, including but not limited to: thatthe proposed warrant extension will be completed as intended; theCompany’s stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptionsas set out herein. Forward-looking statements are made as of the datehereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events orresults or otherwise, except as required by law. There can be noassurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors shouldnot place undue reliance on forward-looking statements.
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