- Valterra (VQA) has closed the final tranche of a previously announced private placement, raising a total of roughly C$1.04 million
- The second tranche comprised 20.91 million units at a price of five cents each for a total of $1.045 million
- All together, the company issued 28.17 million units, which are comprised of one common shares and one common share purchase warrant
- The proceeds will be used to fund the acquisition of a privately-held Brazilian company which owns 100 per cent of the Lima Project
- Valterra (VQA) is currently steady and is trading at 12 cents per share
Valterra (VQA) has closed the final tranche of a previously announced private placement, raising a total of roughly C$1.4 million.
Under the second and final tranche, the company issued 20.91 million units at price of five cents for a total of $1.04 million. All together, the company issued 28.17 million units, each of which are comprised of one common share and one common share purchase warrant.
Each purchase warrant will be exercisable at a price of 10 cents per share over a period of four years.
The proceeds raised under the placement will be used to fund Valterra’s acquisition of a privately-held Brazilian company for $500,000 in cash, which has signed a purchase agreement to wholly acquire the Lima Project.
A portion of the funds will also be used for initial exploration work at the project in preparation for bulk sampling, and for general working capital purposes.
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 Lima Project sits within the Poconé Mining District in central Brazil’s Cuiabá Basin, and is 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.
With a number of major Archean greenstone and Proterozoic sedimentary-hosted gold districts, the region boasts extremely favourable geology. In the past, it has attracted interest from significant miners, including Kinross, Vale, Anglogold Ashanti, Lundin Mining, Yamana, and Great Panther.
Valterra (VQA) is currently steady and is trading at 12 cents per share at 2:21pm EDT.