ValOre Metals Corp. (“ValOre”, or the “Company”) (TSX-V:VO,
OTC:KVLQF, Frankfurt: KEQ) today announced the closing of
the previously announced "best efforts" brokered private placement
(the "
Offering") for gross proceeds of
C$11,000,000, which includes the proceeds from the full exercise of
the Agent’s option. Due to significant demand, the Offering was
upsized from the original gross proceeds of C$7.0 million. Under
the Offering, the Company sold 18,333,333 flow-through units of the
Company to charitable purchasers (each, a "
Charity FT
Unit") at a price of C$0.60 per Charity FT Unit. Red Cloud
Securities Inc. (the “
Agent”) acted as sole agent
and bookrunner under the Offering.
Each Charity FT Unit consists of one common
share of the Company (each, a "FT Share") and
one-half of one common share purchase warrant (each whole warrant,
a "Warrant"), each of which is issued as a
“flow-through share” within the meaning of the Income Tax Act
(Canada). Each Warrant shall entitle the holder to purchase one
common share of the Company (each, a "Warrant
Share") at a price of C$0.65 per Warrant Share at any time
on or before November 17, 2023. The Warrant Shares issuable upon
exercise of the Warrants will not qualify as “flow-through shares”
for the purposes of the Income Tax Act (Canada). The FT Shares and
Warrant Shares are subject to a hold period ending on March 18,
2022 in accordance with applicable securities laws.
ValOre's Chairman and CEO, Jim Paterson,
commented, "We are thankful for the ongoing support of existing
ValOre shareholders and the high interest level of new investors
demonstrated by the success of this financing. Raising funds at
this time will allow us to return to ValOre’s Angilak Property
uranium project in the 2022 season with a significant and material
exploration budget and a well-planned program. We are very excited
to get back on a project with so much exploration upside."
The Company intends to use the proceeds raised
from the Offering for exploration work on ValOre's wholly-owned
Angilak Property Uranium Project in Nunavut Territory which hosts
the Lac 50 Trend uranium deposits that have a current Inferred
Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3
million pounds U3O8. The gross proceeds from the issuance of the FT
Shares will be used for “Canadian Exploration Expenses” (within the
meaning of the Income Tax Act (Canada)) (the “Qualifying
Expenditures”), which will be renounced with an effective date no
later than December 31, 2021 to the purchasers of the Charity FT
Units in an aggregate amount not less than the gross proceeds
raised from the issue of the FT Shares.
In connection with the Offering, the Company:
(i) paid the Agent a cash commission equal to 6% of the gross
proceeds from the Offering, excluding the gross proceeds in the
amount of approximately $2 million from the sale of Charity FT
Units to purchasers included on a president’s list (the
"President's List"), and (ii) issued to the Agent
900,000 warrants (the "Broker Warrants"). Each
Broker Warrant entitles the Agent to acquire one common share of
the Company at a price of C$0.60 at any time on or before November
17, 2023. The President's List is subject to the same cash
commission and broker warrant terms between the Company and certain
finders.
About ValOre Metals Corp.
ValOre Metals Corp. (TSX‐V: VO) is a Canadian
company with a portfolio of high‐quality exploration projects.
ValOre's team aims to deploy capital and knowledge on projects
which benefit from substantial prior investment by previous owners,
existence of high-value mineralization on a large scale, and the
possibility of adding tangible value through exploration, process
improvement, and innovation.
In May 2019, ValOre announced the acquisition of
the Pedra Branca Platinum Group Elements (PGE) property, in Brazil,
to bolster its existing Angilak uranium, Genesis/Hatchet uranium
and Baffin gold projects in Canada.
The Pedra Branca PGE Project comprises 51
exploration licenses covering a total area of 55,984 hectares
(138,339 acres) in northeastern Brazil. At Pedra Branca, 5 distinct
PGE+Au deposit areas host, in aggregate, a current Inferred
Resource of 1,067,000 ounces 2PGE+Au contained in 27.2 million
tonnes grading 1.22 g/t 2PGE+Au (CLICK HERE for ValOre's July
23, 2019 news release). All the currently known Pedra Branca
inferred PGE resources are potentially open pittable.
Comprehensive exploration programs have
demonstrated the "District Scale" potential of ValOre's Angilak
Property in Nunavut Territory, Canada that hosts the Lac 50 Trend
having a current Inferred Resource of 2,831,000 tonnes grading
0.69% U3O8, totaling 43.3 million pounds U3O8. *For disclosure
related to the inferred resource for the Lac 50 Trend uranium
deposits, please CLICK HERE for ValOre's news release dated March
1, 2013.
ValOre's team has forged strong relationships
with sophisticated resource sector investors and partner Nunavut
Tunngavik Inc. (NTI) on both the Angilak and Baffin Gold
Properties. ValOre was the first company to sign a comprehensive
agreement to explore for uranium on Inuit Owned Lands in Nunavut
Territory and is committed to building shareholder value while
adhering to high levels of environmental and safety standards and
proactive local community engagement.
On behalf of the Board of Directors,
"Jim Paterson"
James R. Paterson, Chairman and CEO
ValOre Metals Corp.
For further information about ValOre Metals
Corp., or this news release, please visit our website at
www.valoremetals.com or contact Investor Relations at 604.653.9464,
or by email at contact@valoremetals.com.
ValOre Metals Corp. is a proud member of
Discovery Group. For more information, please visit:
http://www.discoverygroup.ca/
Neither the 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 contains "forward-looking
statements" within the meaning of applicable securities laws.
Although ValOre believes that the expectations reflected in its
forward-looking statements are reasonable, such statements have
been based on factors and assumptions concerning future events that
may prove to be inaccurate. These factors and assumptions are based
upon currently available information to ValOre. Such statements are
subject to known and unknown risks, uncertainties and other factors
that could influence actual results or events and cause actual
results or events to differ materially from those stated,
anticipated or implied in the forward-looking statements. A number
of important factors including those set forth in other public
filings could cause actual outcomes and results to differ
materially from those expressed in these forward-looking
statements. Factors that could cause the actual results to differ
materially from those in forward-looking statements include the
future operations of ValOre and economic factors. Readers are
cautioned to not place undue reliance on forward-looking
statements. The statements in this press release are made as of the
date of this release and, except as required by applicable law,
ValOre does not undertake any obligation to publicly update or to
revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise. ValOre
undertakes no obligation to comment on analyses, expectations or
statements made by third parties in respect of ValOre, or its
financial or operating results or (as applicable), their
securities.
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