Valterra Closes Private Placement
Valterra Closes Private Placement
Vancouver, British Columbia--(Newsfile Corp. - July 10, 2020) -
Valterra Resource Corporation (TSXV:
VQA) (OTCQB: VRSCF) ("Valterra" or the "Company") has closed the second and final tranche of its
previously reported private placement by issuing 20,910,000 units at a price of $0.05 per unit for gross
proceeds of $1,045,500. In total, the Company has now closed 28,170,000 units in two tranches for total
gross proceeds of $1,408,500. Each unit consists of one common share and one share purchase
warrant exercisable to purchase one additional common share for a period of four years at an exercise
price of $0.10 per common share. Securities issued pursuant to the private placement, including
common shares and share purchase warrants, carry a legend restricting trading of the securities until
October 16, 2020 for the first Tranche and until November 10, 2020 for the second and final Tranche.
The final closing is subject to certain conditions including, but not limited to, the receipt of all necessary
approvals including the approval of the TSX Venture Exchange. Finders' fees and commissions may be
paid by Valterra in relation to this issuance.
Net proceeds from the private placement will be used to fund a private Brazilian company wholly owned
by Valterra 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, reportedly mined 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.
Robert Macdonald, MSc. P.Geo, is the General Manager of Exploration of Valterra Resource
Corporation and a Qualified Person as defined by National Instrument 43-101. He is responsible for
directing exploration on the Lima project and for the preparation of the technical information in this
disclosure.
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
Los Reyes
copper- gold property in Mexico and a 100% interest in the Lima gold-silver project, Brazil.
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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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/59551