- Valterra Resource Corporation (VQA) has reduced its previously announced private placement from C$3 million to $1.5 million
- The company now plans to issue 20 million units at a price of 7.5 cents per share, each of which will consist of one common share and one-half of a share purchase warrant
- These warrants will be exercisable at a price of 12.5 cents per share for a period of three years
- Proceeds from the financing will be used to advance the company’s recently launched Brazilian gold program
- Valterra Resource Corporation (VQA) is currently up 13.33 per cent to 8.5 cents per share at 3:10pm EST
Valterra Resource Corporation (VQA) has reduced its previously announced private placement from C$3 million to $1.5 million.
According to a release dated September 17, the Vancouver-based company had originally intended to issue up to 30 million units at a price of 10 cents each. This has now been revised to 20 million units at a price of 7.5 cents each.
These units will be comprised of one common share in Valterra and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional share at a price of 12.5 cents, exercisable over a period of three years from the date of issuance.
All of the securities issued in connection with the placement – which remains subject to approval from the TSX Venture Exchange – will be subject to a mandatory holding period of four months and one day.
The proceeds raised will be used to fund Valterra’s recently implemented Brazilian gold program, which will focus on revenue generation through the acquisition and development of small, under-capitalised gold deposits within the prolific Poconé Gold District.
In mid-October, Valterra launched a 5,000-tonne bulk sampling program at the Livramento Gold Project designed to evaluate the grades of the existing vein system on the property. A 30-tonne-per-hour mill has now been installed and has begun processing the material.
The focus of this bulk sampling work will be on testing the extent and grade of mineralisation in existing pits, and on trenching new exploration regions below shallow soil.
Initial gold pouring from the bulk sample mill-run is expected to occur by the end of November.
Valterra Resource Corporation (VQA) is currently up 13.33 per cent to 8.5 cents per share at 3:10pm EST.
