- Valterra Resource (VQA) is looking to raise C$3 million in a private placement to fund its new Brazil-based gold strategy
- The company intends to issue up to 30 million units at a price of 10 cents each, consisting of one common share and half of one common share purchase warrant
- Each warrant will be exercisable at a price of 15 cents per share for a period of three years
- An initial strategic step is the acquisition of Poconé Mining Mineração, which owns the Lima property in the Poconé-Cuiaba Gold Belt
- Valterra Resource Corporation (VQA) is currently up 12.5 per cent and is trading at nine cents per share
Valterra Resource (VQA) is looking to raise C$3 million in a private placement to fund its new Brazil-based gold strategy.
Under the terms of the placement, the Vancouver-based company intends to issue up to 30 million units at a price of $0.10 each. These units will be comprised of one common share in Valterra and half of one common share purchase warrant.
Each whole warrant will be exercisable at a price of $0.15 per share for a period of three years from the date of issuance.
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.
An initial part of this strategy is Valterra’s proposed acquisition of privately held company Poconé Mining Mineração, which currently owns the Lima property located in the Poconé-Cuiaba Gold Belt.
Upon completion of the transaction, Valterra will also hold an option to acquire a 100 per cent interest in the past-producing, 250-hectare Livramento Gold Project, for which Poconé Mining Mineração has already made an initial down-payment.
In order to complete the next stage of payments, which would thereby secure the full stake, the company will issue approximately $4.97 million in instalments over the next 18 months.
This will be partly funded by the proceeds from the current financing, with other portions of the placement destined for additional exploration and geological modelling, which is expected to drive the completion of an updated NI-43-101 technical report.
As part of this process, Poconé Mining Mineração will use existing infrastructure to carry out a 5,000-tonne bulk sample program at Livramento, as well as a number of other trial mining activities.
Valterra Resource (VQA) is currently up 12.5 per cent and is trading at nine cents per share at 2:03pm EDT.