Valterra Announces Private Placement; Acquires Lima Gold Project in Brazil
Valterra Announces Private Placement; Acquires Lima
Gold Project in Brazil
Vancouver, British Columbia--(Newsfile Corp. - May 29, 2020) -
Valterra Resource Corporation
(OTCQB: VRSCF)
("Valterra" or the "Company") reported today that it plans to issue up to a total of
15,000,000 units
, in a non-brokered private
placement at a price of
$0.05 per unit
for gross proceeds of
Cdn $750,000
. Each unit will consist of one common share and
one warrant, with each warrant exercisable to purchase one common share for a period of 4 years at $0.10.
The Company will
make provision for an over-allotment option (Greenshoe) to allow a purchase of up to 10% additional units beyond the number of
units in this offering. The securities issued upon closing of this offering will be subject to a hold period of four months and one
day from issuance. The private placement is subject to regulatory approval. Finders' fees and commissions may be paid by
Valterra in relation to this issuance.
Net proceeds from the private placement will be used to acquire a private Brazilian company that has a purchase agreement to
acquire a 100% interest in the 172 ha freehold
Lima Property
for a purchase price of Cdn$500,000, as well as initial
exploration work in preparation for bulk sampling at Lima, and for general working capital.
About Lima Property, Poconé District, Brazil
Valterra has entered into an agreement to acquire a 100% interest in the freehold
Lima Property
for a purchase price of
Cdn$500,000 via purchase of a private Brazilian company. Management believes that this is a rare opportunity to acquire a
highly-prospective gold property at exceptionally attractive terms which has the potential to be fast-tracked to production.
It is a Laterite-type gold project with easy logistics in the productive Poconé District. The project comes with a proven
operational team in a mature mining district with very attractive economics. Existing mines in the District require no blasting as a
result of deep weathering and consist of free-digging open-pit operations, typically to a depth of up to 80 metres.
The Lima Project is located within the Poconé Mining District, in central Brazil's Cuiabá Basin (Baixada Cuiabana), in the
southern part of the state of Mato Grosso, just 10 minutes' drive from the town of Poconé, a mining town of 32,000. Access to the
project area is by paved and gravel roads with daily scheduled flights from an airport located in Cuiabá, the State Capital,
104km north and connected to the principal cities of Brazil by daily scheduled airline flights. The
Poconé Mining District
reportedly produces over 250,000 ounces of gold annually from 17 different active laterite mines with the Company's Lima
Property immediately adjacent to the currently producing Edmur gold mine.
Brazil has favorable geology with several major Archean greenstone and Proterozoic sedimentary-hosted gold districts, which
has attracted major miners including Kinross, Vale, Anglogold Ashanti, Lundin Mining, Yamana, and Great Panther and has
resulted in significant annual gold production. Brazil is highly regarded as a mining jurisdiction with regulations providing
favorable mineral title and foreign ownership. Brazil has a tax agreement with Canada.
The
Poconé Mineral Belt
has enormous untapped potential for discovery with well-developed infrastructure, including access to
power, water, major highways, airports and highly skilled labour and experienced equipment contractors.
The Poconé Mining Team
Richard Crew -
Mr. Crew, a British mining engineer, has a wealth of knowledge of Brazilian mining operations built up over 30
years in both open pit and underground mines. Most recently, he was COO for ASX-listed Orinoco Gold. Prior to this, he was
General Manager Projects for the Sáo Bento Group, a private mining group operating two gold mines in the states of Mato
Grosso and Para producing a combined total of 100,000oz per annum of gold. In this role, he successfully managed a Bankable
Feasibility Study and construction of a 2Mtpa gravity/CIL processing plant and mining operations. He has previously held a wide
range of senior operational and executive positions internationally for AIM, TSX and ASX listed companies. Mr Crew holds a
City and Guilds engineering diploma from Cornwall technical college/Camborne school of mines and AACA Level 3 from the
Open University and speaks fluent Portuguese.
Jeremy Gray -
Mr. Gray has been involved in mining for 26 years. He started his career at Credit Suisse in Melbourne in 1994
as a Mining Research Associate before moving to London to run the Mining Equity research team at Morgan Stanley. In2001, he
joined Sthenos Capital as a founding partner of a Hedge Fund with focus on Mining and Basic Materials trading. In 2005, Mr
Gray returned to Credit Suisse in London to run the Mining team. In January 2009 he joined the world's largest cobalt producer at
the time in DRC before it was acquired by ENRC in September 2009. In 2010, Mr. Gray joined Standard Chartered in Hong
Kong to run the Mining team, and in 2014 he became a founding partner of Chancery Asset Management in Singapore. For the
last 3 years he has also worked as a Director of a Singapore based gold streaming & royalty company. Mr Gray sits on the
boards of Axiom Mining and White Rock Minerals that both trade on the ASX.
Thomas Puppendahl -
Mr. Puppendahl has over 28 years' experience in global capital markets as a strategist, portfolio
manager, investment banker and analyst. He is the founder and managing partner of Chancery Asset Management, an
independent strategic advisory firm based in Singapore, specializing in precious metals and emerging markets. In 2015,
Chancery became a founding partner of a gold streaming & royalty company focused on providing development capital to
emerging gold producers such as K92 Mining (TSXV: KNT). Prior to setting up Chancery, Mr. Puppendahl worked in mergers
and acquisitions, private equity, emerging markets and management consulting with Merrill Lynch, Ermgassen & Co. and the
Monitor Group in London and Mumbai. Mr. Puppendahl holds Master's degrees in both Physics and Business Administration
from RWTH Aachen University, Germany.
Wallacy Goncalves -
Mr. Goncalves is a highly respected Brazilian national who has worked in senior positions for several
international mining companies. Both in Africa and Brazil, he is extremely well connected, has direct access to local and regional
government agencies and politicians. He is bilingual Portuguese / English.
Marcelo Lima -
Mr. Lima is a Brazilian national with more than 30 years of mining experience. He is renowned to be one of
Brazil's leading mine operations specialists, and he is a qualified mining technician with CREA registration. Marcelo has held
senior operational positions with Anglo Gold Ashanti, Rio Tinto, Votorantim Metals and Jaguar Mining. During his tenure with
these companies he was responsible for the opening of 8 mines.
About Valterra Resource Corporation
Valterra is a Manex Resource Group Company. The group provides expertise in exploration, administration, and corporate
development services for Valterra's mineral properties located in British Columbia, Nevada, and Mexico. Valterra is focused on
early stage properties with the potential to host large deposits in regions with excellent infrastructure. Valterra owns a 100%
interest in the
Swift-Katie
copper gold porphyry property in British Columbia. It is earning a 100% interest in the
Weepah
property in Nevada, with past production totaling approximately 117,000ozs gold and significant exploration potential for a high-
grade bulk-mineable gold discovery and a 100% interest in the
Los Reyes
copper- gold property in Mexico.
-30-
On behalf of the Board of Directors,
"Lawrence Page"
Lawrence Page Q.C., President, Valterra Resource Corporation
For further information, please visit Valterra's website at
valterraresource.com
or contact Valterra at 604.641.2759 or by email at
.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery
processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and
uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are
based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions,
interest rates, commodity markets, regulatory and governmental approvals for Valterra Resource Corporation's projects, and
the availability of financing for Valterra Resource Corporation's development projects on reasonable terms. Factors that
could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and
exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital
and financing and general economic, market or business conditions. Valterra Resource Corporation does not assume any
obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise,
except to the extent required by applicable law.
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