Valterra Receives Extension for Previously Announced Private Placements
09:00 EDT Monday, August 29, 2016
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 29, 2016) - Valterra Resource Corporation ("Valterra") (TSX VENTURE:VQA) reported today that it has received approval from the TSX.Venture Exchange for a 30 day extension to close the previously announced Private Placements. (July 14/2016) The Company plans to issue up to 25,000,000 units in two non-brokered private placements for total gross proceeds of $1,250,000.
Valterra will issue up to 10,000,000 units in a flow-through private placement at a price of $0.05 per unit ("FT Unit") to raise $500,000, and to issue up to 15,000,000 units in a non-flow-through private placement at a price of $0.05 per unit ("NFT Unit") to raise $750,000. Each Flow-Through Unit will consist of one flow-through common share and one half share purchase warrant, with each whole warrant (a "Warrant") exercisable to purchase one non-flow-through common share at an exercise price of $0.10 per share for a period of five years. Each NFT Unit will consist of one non-flow-through common share and one Warrant exercisable to purchase one common share at an exercise price of $0.10 for a period of five years.
Finders' fees and commissions may be paid by Valterra in relation to this issuance. 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 these Offerings.
Net proceeds from the private placement will be used for corporate purposes and to fund costs associated with exploration on Valterra's 100% owned porphyry/shear-hosted copper-gold-silver Swift Katie Project in southeastern British Columbia near Salmo.
The proposed exploration program will consist of up to 1500 metres of drilling in four to five core holes which will target offsets of high-grade gold intercepts from 2014 drilling on the property which returned a 3.5m interval averaging 13.3g/t gold, 201g/t silver and 0.33% copper over 1.5 metres in hole SK14-002.
The gold-enriched mineralization was returned from a sulphide rich shear approximately 165 metres below surface and is open in all directions. Drilling will test both up dip and along strike of the high-grade intercept in order better define the orientation of the mineralization and geological setting.
The securities issued upon these offerings will be subject to a hold period of four months and one day from issuance.
The Swift Katie Property
The Swift Katie project consists of 17 contiguous MTO mineral claims, covering over 80 square kilometres within a geologically favorable and highly metallogenic area of BC that historically has hosted several important mining camps.
Drilling to date on the Katie zone has identified three accumulations of semi continuous Cu-Au mineralization over an 1,800m cumulative strike length. Internal work by Valterra has identified eight infill holes totaling 2,600m which, when completed, would significantly enhance both the size and continuity of the mineralized zone. Widespread Cu-in-soil anomalies suggest several additional untested targets.
Drilling on the property in 2014 focused on the southern and more gold-enriched "Swift" portion of the claims and returned a 3.5m interval of 13.3g/t gold, 201g/t silver and 0.33% copper over 1.5 metres, within hole SK14-002.
The high-grade gold-silver vein intercepts at the Swift target warrants further exploration and follow-up, as previous work on the zone focused primarily on the large-scale copper-gold porphyry potential.
Gold mineralization at Swift is associated with pyrite-pyrrhotite-chalcopyrite veins at the contact between an andesite volcanic unit and a diorite intrusive, and sit within a much broader zone containing elevated copper and lead.
The package may reflect a transitional environment from a porphyry to an epithermal system and shows some similarity to styles of mineralization identified in the historic Rossland Mining Camp (Past Production: 2.4 M oz/Au; 3.4M oz/Ag and 120Mlbs Cu) located just 25km to the west of the property.
The results support the Company's belief of a widespread gold-enriched, transitional-epithermal system at the Swift target and a large alkali porphyry system at the Katie target. Further work may continue to expand the known mineral systems and over a half dozen targets which remain to be tested on the property.