Vulcan Minerals Inc -
Vulcan to sell 1.4 million shares privately
Vulcan Minerals Inc
VUL
Shares issued 10,157,000
Oct 6 2000 close $.110
Oct 12 2000 8:35:34
Mr. Patrick Laracy reports
Vulcan Minerals proposes to carry out a non-brokered private placement of 1.4
million shares at 15 cents with a full warrant attached exercisable and 20 cents for
one year. The proceeds of $210,000 will be used for general working capital and
western Newfoundland petroleum exploration. The placement is subject to stock
exchange approval.
Further to news in Stockwatch May 31, 2000, the acquisition of London
Resources Inc. has closed and Vulcan is now the 100-per-cent working interest
holder of Flat Bay petroleum permit 96-105 in western Newfoundland, subject to
royalties. The Flat Bay permit covers approximately 70,000 acres of the
underexplored northern Bay St. George basin. In September, 1999, Vulcan
drilled a test well 286 metres deep to investigate a shallow oil occurrence in a
previous mining hole. The well encountered significant oil shows over a gross
interval exceeding 100 metres, including live oil in the drilling fluid. A seismically
defined structure has been located approximately four kilometres from the test
well and presents an excellent target for drilling. Vulcan plans to drill this target,
preferably with a multiwell program, in early 2001.
Onshore exploration activity in western Newfoundland by other operators has
recently resumed on several fronts. A private American company has commenced
a multiwell drilling program in the permit immediately adjacent to Vulcan's Flat
Bay 96-105. The first well has commenced drilling within 100 metres of the
boundary of permit 96-105. Furthermore a recent well in the Deer Lake basin by
a private Newfoundland company encountered undisclosed amounts of natural gas
and condensate. The operator is preparing to re-enter and deepen the well. The
Deer Lake basin contains rocks of similar age to the Flat Bay permit area and is
approximately 100 kilometres north of Flat Bay. Finally, the Port au Port
discovery originally made by Hunt Oil approximately 45 kilometres to the west of
the Flat Bay permit is slated to go into production in early 2001 and will usher in a
new era for petroleum production in western Newfoundland. Vulcan also owns a
100-per-cent interest in three offshore licences in western Newfoundland covering
approximately 1.2 million acres. The company is continuing its efforts to advance
exploration on its western Newfoundland properties by seeking joint ventures and
financing.
As well, the company has staked 20 claims in Labrador covering a nickel/copper
prospect in the Nain plutonic suite, the igneous intrusion which contains the Voisey
Bay deposit. Previous drilling on the prospect in 1995 encountered several
encouraging nickel/copper grades such as 23.7 metres of 0.47 per cent nickel and
0.16 per cent copper including 6.31 metres of 1.07 per cent nickel and 0.37 per
cent copper. Compilation work is continuing and further details will be released
upon its completion.
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