- Valterra Resources (TSXV:VQA) is issuing a private placement to finance the purchase of a property in Brazil
- Through the private placement, the company is issuing 15 million units at a price of C$0.05 per share, for gross proceeds of C$750,000
- The company will use $500,000 of the proceeds to purchase the Lima Gold project in Brazil from a private company
- The remainder of the cash will be used to fund the initial exploration program at Lima
- Valterra Resources (VQA) is in the grey and is trading at $0.04 per share
Valterra Resources (TSXV:VQA) is issuing a private placement to finance the purchase of a property in Brazil.
Through the private placement, the company is issuing 15 million units at a price of C$0.05 per share. The company hopes to raise C$750,000 from the share offer.
Each unit on offer is composed of one common share of Valterra, along with a warrant for a further share purchase. The warrant is exercisable at any point over the next four years, for a price of 10 cents.
The company is also providing an over-allotment of 10 per cent during the offer, allowing the purchase of more Valterra shares, if an investor is interested in doing so.
The proceeds of this offer will be used to pick up a new Brazilian subsidiary, which owns the Lima Gold project in Brazil.
The company has agreed to a purchase price of $500,000 for the Lima project, from a private Brazilian company. Valterra called the project a rare opportunity.
The remaining $250,000 raised from the share offer will fund initial exploration work at Lima, along with general working capital.
The purchase of Lima also comes with the subsidiary of the private company, which has been exploring the property. The subsidiary is an international exploration team with proven track records in the region.
Lima sits on top of a laterite-type gold belt and has solid logistic advantages due to its location in the already developed Pocone District in central Brazil.
Valterra Resource Corp (VQA) is in the grey and is trading at $0.04 per share at 12:06 pm EDT.
