TORONTO, Nov. 14 /CNW Telbec/ - VVC EXPLORATION CORPORATION (VVC: TSX-V)
(V7S: FSE / BBSE) ("VVC" or the "Company") reports that further to the
Company's Notice of Default contained in its news release of June 4, 2007 the
following is the Company's bi-weekly default status report pursuant to
Appendix B of CSA Policy 57-301:
The Company has finalized its audited financial statements for the year
ended January 31st, 2007 (the "Year-End Financials") which have been filed on
SEDAR. The Year-End Financials contains a restatement with respect to the year
ended January 31st, 2006, which was required on account of a restatement for
the same period by Beaver Antimony Mines Inc. ("BBAM"). In preparing its year
end financial statements, BBAM's current auditors determined that BBAM's
comparative financial statements for the year ended January 31, 2006 did not
include a future income tax liability affecting the value of BBAM's common
shares. As such, this error affected the value of the investment carried by
the Company. The Company controlled 27.5% of BBAM as January 31st, 2006 and
22.5% as at January 31st, 2007. The Company also adjusted misallocations and
the tax effect relating to flow through shares issued by the Company in fiscal
2006. This adjustment was also related to the Company's investment in BBAM. As
such, the effect of this restatement to the January 31, 2006 reported figures
are as follows:
1. a decrease in long term investment of $1,198,058;
2. a decrease in share capital of $366,530;
3. a decrease in the gain on divestiture of BBAM of $1,071,035
(resulting in a loss of $512,587);
4. a decrease in the equity in losses of BBAM of $69,917;
5. an increase in the opening deficit of $169,589.
The Year-End Financials also include the write-off of $2,008,925 relating
to the Company's investment in the Tong Guan Glory joint venture in the
People's Republic of China, due to the uncertainty of recovering such amounts.
In June of 2006, the Company determined it no longer had control over the
joint venture. As such, for its year ended January 31, 2007, the Company
ceased proportionately consolidating results and recorded its investment at
cost, net of prior write-offs.
For more information regarding the Company's current holdings in BBAM,
refer to the News Release of May 24, 2007 and the Company's Management
Discussion and Analysis filed on SEDAR with the Year-End Financials.
The Company is still late in filing its interim financial statements for
the quarters ending April 30 and July 31, 2007, which statements could not be
prepared until after the Year-End Financials were finalized. The Company is
currently and expeditiously working on the preparation of these quarterly
statements and will file them on SEDAR as soon as it is practical in order for
the Management Cease Trading Order to be lifted by the Securities Commissions.
The cease trade order restricts Directors and Management from trading the
securities of the Company. Persons unrelated to the Company may still trade
their securities. The Company's shares trade on the TSX Venture Exchange under
the symbol "VVC" and on the Frankfurt Stock Exchange and the Berlin-Bremen
Stock Exchange under the symbol "V7S". The Company is continuing its
exploration activities and its search for new property acquisitions. The
Company is also in excellent financial situation with about $3.3 million in
cash and liquid assets.
VVC Exploration Corporation is a Canadian exploration company with
projects in Canada. VVC also has an indirect participation in the Beaver Brook
Antimony Mine in Newfoundland, Canada. VVC is also aggressively searching for
other projects such as Gold, Base metal, Uranium and Antimony at various
stages of development. Visit our website at www.vvcexploration.com.
The TSXV has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.
On Behalf of the board of Directors
Michel J. Lafrance, Secretary-Treasurer
For further information:
For further information: Charles Descary, Manager, Investor Relations,
(514) 631-2727, 1-877-558-2727 ext 222, email@example.com