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Gold/Mining/Energy : Vulcan Minerals - C.VUL -- Ignore unavailable to you. Want to Upgrade?

To: Len Hynes who wrote (382)	5/26/2000 3:30:00 PM
From: Cyber Rock	Read Replies (1) \| Respond to of 415

Vulcan Minerals Inc - Vulcan acquires option to purchase London Resources This was my source-- entire release follows Vulcan Minerals Inc VUL Shares issued 9,519,500 2000-05-203 close $0.14 Wednesday May 24 2000 Mr. Patrick Laracy reports As of May 24, 2000, the company has entered into an option agreement with the shareholders of London Resources Inc., an affiliated private company, to acquire 75 per cent of the shares of London that Vulcan does not already own. The main asset of London is a 100-per-cent working interest in petroleum permit 96-105 Western Newfoundland subject to a 3-per-cent gross-overriding royalty to Patrick Laracy and Douglas Brett. If the option is exercised London will become a wholly owned subsidiary of Vulcan and therefore Vulcan will control a 100-per-cent working interest in permit 96-105. The option may be exercised on or before May 31, 2000, by paying the London shareholders $30,000 worth of Vulcan stock at a share price equal to the average closing price for 10 trading days preceding exercise of the option. As well, the London shareholders will retain a 9.5-per-cent royalty interest in permit 96-105. The total royalty on the permit being 12.5 per cent including the underlying 3-per-cent gross-overriding royalty. The president of Vulcan is a director and an indirect non-controlling 12.5-per-cent shareholder of London. The option agreement is subject to regulatory approval. With Vulcan having the option to control a 100-per-cent working interest in permit 96-105 it will greatly assist the company in its efforts to joint venture or farm out a portion of its interest while retaining a significant working interest. Given the poor market conditions for financing exploration projects, the company feels it is in the best interests of shareholders to focus its efforts on farming out permit 96-105 rather than financing a drill program at an undervalued share price. The company is continuing discussions with two different groups who have expressed serious farm-in interest. The company is committed to advancing the exploration of permit 96-105 where significant oil shows were encountered in the first well ever drilled in the northern Bay St. George basin. As well, the company owns 100-per-cent interest in approximately 1.2 million acres offshore western Newfoundland and is seeking joint venture partners to acquire seismic data over identified structural leads (primary targets). (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com old url (better for printing)