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Valterra (TSXV:VQA) extends closing of equity financing, acquires Brazilian miner

Mining, The Market Online Deal Room
TSXV:VQA
19 July 2021 16:45 (EST)

Valterra Resource Corporation (VQA) has extended the closing of its C$1.25 million equity financing and acquired Poconé Mining Mineração.

Financing

The offering, extended by 30 days from the date of this story, consists of up to 25,000,000 units priced at $0.05 per unit.

Each unit consists of one common share and one-half of one common share purchase warrant.

Each warrant is exercisable to purchase one common share for $0.10 for up to three years from issuance.

The financing carries an over-allotment option of up to 10 per cent.

Part of the proceeds will fund the exploration program on the Los Reyes Project in Mexico.

Valterra has completed surface mapping and sampling, followed by a limited IP geophysical program. Surface samples of oxidized copper mineralization are encouraging with 22 of 28 samples averaging 3.08 per cent Cu.

Permits are in place for a four to six core hole program up to 2,000 m. Drilling will test a 400-metre strike length of exposed Cu-Au skarn.

The company will also use the proceeds for general working capital including G&A, property maintenance and property option payments.

Sale of Brazilian assets 

The TSXV has conditionally approved the acquisition of Poconé Mining Mineração, a private Brazilian company with a 100 per cent interest in the Lima Gold Property and an agreement to purchase the Livramento Gold Property, both in Brazil.

Upon closing of the acquisition, Valterra has agreed to sell Poconé to Pilar Gold for 4,000,000 of Pilar’s common shares priced at $0.60 each or $2.4 million.

Management believes Pilar Gold is best positioned to unlock Poconé’s potential through its aggressive growth strategy in Brazil.

Valterra, a Manex Resource Group company, is focused on early-stage properties with the potential to host large deposits with excellent infrastructure.

Valterra Resource Corporation (VQA) closed unchanged trading at $0.045 per share.

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