Valorem Announces That IT Has Filed an Amended and Restated Md&a FOR the Year-Ended April 30, 2021
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VALOREM ANNOUNCES THAT IT HAS FILED AN AMENDED AND RESTATED MD&A FOR THE YEAR-
ENDED APRIL 30, 2021
Vancouver, British Columbia - (October 25, 2021) – VALOREM RESOURCES INC. (the “Company” or
“Valorem”) (CSE: VALU) (Frankfurt: 1XW1) . The Company announces that as a result of a continuous
disclosure review conducted by staff of the British Columbia Securities Commission, the Company is
issuing the following press release to clarify its disclosure. In particular, the Company has filed an amended
annual management discussion and analysis (“MD&A“) for the year ended April 30, 2021 (the “Revised
MD&A“). The previously filed MD&A for the year ended April 30, 2021 was originally filed by the Company
on SEDAR on August 30, 2021. The Revised MD&A replaces and supersedes the previously filed version.
The revisions relate only to the MD&A and no changes were made to the financial statements for the
relevant period.
The Revised MD&A provides, among other things, more prominent disclosure of the rationale for the
acquisition of 1267818 B.C. Ltd. ("1267818") , the acquisition of which was previously announced on
February 12, 2021; and the accounting treatment for the acquisition of 1267818. The Revised MD&A now
provides, among other information, the following disclosures:
• In connection with the issuance of 30,000,000 common shares in the capital of the Company with
a fair value of $5,100,000 for the acquisition of 1267818 (the "Acquisition"), in accordance with
the Company’s significant accounting p olicy, the Company recorded the consideration paid in
excess of the net assets acquired to the Statement of Loss and Comprehensive Loss.
• In accordance with the Company’s significant accounting policy for exploration and evaluation
assets, all acquisition, exploration and development of exploration and evaluation assets are
expensed unless such mineral properties are placed into commercial production, at which time
they are capitalized.
• Pursuant to the Company’s accounting policy, the Company recorded an ex pense $5,100,000 to
the statement of loss and comprehensive loss for the year ended April 30, 2021. This transaction
was completed using equity of the Company and is a non-cash transaction.
• The Company’s net loss for the year ended April 30, 2021 was $7,1 43,486 (2020 - $527,557),
representing an increase of $6,615,929, year over year. In total, non -cash transactions for share
based compensation of $490,035 (2020 - $Nil) and the acquisition of 1267818 of $5,100,000 (2020
- $Nil), accounted for 85% of the increase. The resulting increase in the Company’s overall deficit
may impact the Company’s ability to finance in the future.
• The transaction price was negotiated at arm’s length, based on a variety of considerations,
including: publicly available informatio n about the purchase price previously paid for the
underlying exploration property by one of the previous owners; market price per ounce of gold at
the time of negotiations; increased appreciation of the price per ounce of gold (compared to
recent years); significant market demand for exploration-stage gold projects through the winter
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of 2020/2021; and the corresponding impact of the appreciation of the price of gold on the
economics of exploring these types of projects.
• Based on the above-mentioned considerations, management of the Company saw an opportunity
to acquire gold exploration claims situated next to historical gold deposits.
A copy of the Revised MD&A may be viewed on the Company's SEDAR profile at www.sedar.com. The
Revised MD&A replaces and supersedes the previously filed MD&A for the year ended April 30, 2021.
About Valorem Resources Inc.
Valorem explores and develops precious metal properties in the Americas.
For further details and maps, please see:
https://valoremresources.com/
ON BEHALF OF THE BOARD - Valorem Resources Inc.
Tony Louie, Interim CEO and Director
Email: [email protected]
Office: 888.795.6268
This news release includes certain statements that may be deemed “forward-looking statements”. All
statements in this release, other than statements of historical facts, including the likelihood of
commercial mining and possible future financings are forward-looking statements. Although the
Company believes the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance and actual results
or developments may differ materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those in forward-looking statements include unsuccessful
exploration results, changes in metals prices, changes in the availability of funding for mineral
exploration, unanticipated changes in key management personnel and general economic conditions.
Mining is an inherently risky business. Accordingly, the actual events may differ materially from those
projected in the forward-looking statements. For more information on the Company and the risks and
challenges of its business, investors should review the Company's annual filings which are available at
www.sedar.com