- Valterra Resource Corporation (TSXV:VQA) has increased its previously announced private placement from C$1 million to $1.4 million
- The company intends to issue up to 28 million units at a price of $0.05 each, consisting of one common share and one common share purchase warrant
- Each warrant will be exercisable at a price of $0.10 for a period of four years from the date of issuance.
- The proceeds raised will be used to fund the acquisition of a private company that holds a 100 per cent interest in the Lima Property in Brazil
- Valterra Resource Corporation (VQA) is currently steady at 7.5 cents per share, as of 1:02pm EDT
Valterra Resource Corporation (TSXV:VQA) has increased its previously announced private placement from C$1 million to $1.4 million.
Under the terms of a placement announced on May 29, 2020, the company had originally sought to issue up to 15 million units at a price of five cents for a total amount of $750,000. This was then increased on June 3, with the intention to issue up to 20 million units for a total of $1 million.
Now, Valterra has increased the placement yet again to a total of up to 28 million units at a price of five cents. Each unit will consist of one common share in the capital of the company and one common share purchase warrant.
These warrants will be exercisable at a price of $0.10 for a period of four years from the date of issuance.
The proceeds raised under the placement will be used to fund the acquisition of a privately-held Brazilian company for a total of $500,000 in cash.
The company owns a 100 per cent stake in the Lima Property, located in the Poconé Mining District of Brazil. A portion of the funds will also be used for exploration work at the Lima Property in preparation for bulk sampling.
Covering a total of 172 hectares, Valterra’s management believes the Laterite-type gold project presents a rare opportunity to acquire a highly-prospective asset at attractive terms with the potential to be fast-tracked to production.
The Poconé Mining District is estimated to produce more than 250,000 ounces of gold each year from 17 separate laterite mines, including the Edmur gold mine, which sits adjacent to the Lima Property.
Valterra Resource Corporation (VQA) is currently steady at 7.5 cents per share at 1:02pm EDT.
