VANCOUVER, British Columbia, Jan. 15, 2019 (GLOBE NEWSWIRE) -- ValOre Metals Corp. (TSX-V: VO)
(“ValOre” or the “Company”) today announced the successful completion of the previously announced
rights offering (the "Offering") which expired on January 8, 2019, raising a total aggregate proceeds of
$2,450,000.
Upon closing, the Company issued a total of 24,500,000 common shares of the Company (each a "Common
Share") under the Offering at a price of $0.10 per Common Share.
3,508,237 Common Shares were issued under the basic subscription privilege and zero (0) Common Shares were
distributed under the additional subscription privilege to persons who were insiders before the offering. 6,759,119 Common Shares
were issued under the basic subscription privilege and 2,316,557 Common Shares were distributed under the additional subscription
privilege to all other persons.
As previously announced, in connection with the Offering, certain parties agreed to provide stand-by commitments
pursuant to a stand-by guarantee agreement (the "SBG Agreement"). Please refer to ValOre’s press release dated
December 3, 2018 for additional details regarding the stand-by commitments. The stand-by guarantors were issued an aggregate
of 11,916,090 Common Shares in connection with the Offering and pursuant to the SBG Agreement such Common Shares were allocated as
follows:
Name of Stand-By Guarantor |
Number of Common Shares |
Purchase Price ($) |
James Paterson |
5,462,500 |
$546,250 |
Sandstorm Gold Ltd. |
375,000 |
$37,500 |
John Robins |
2,000,000 |
$200,000 |
Inclination Earth Sciences Inc. |
1,500,000 |
$150,000 |
Robert Scott |
1,106,090 |
$110,609 |
Vincent Vandamme |
350,000 |
$35,000 |
James Malone |
550,000 |
$55,000 |
Dale Wallster |
250,000 |
$25,000 |
Garth Kirkham |
250,000 |
$25,000 |
Colin Smith |
72,500 |
$7,250 |
In consideration for the stand-by commitment, an aggregate of 2,450,000 bonus warrants (each a "Bonus
Warrant") were issued to the stand-by guarantors. Each Bonus Warrant is exercisable into a Common Share at a price of
$0.23 per Common Share for two years from the date of issuance.
As of the closing date, 49,224,667 common shares of ValOre are issued and outstanding. The Company paid a
solicitation fee of 3% in Cash and 3% in Warrants to Canaccord Genuity and Haywood Securities Inc. for an aggregate of $9,598.56
and issued 95,985 Warrants in connection with the distribution of securities in the Rights Offering. The Warrants issued as part of
the solicitation fee are exercisable for one Common Share at a price of $0.23 and valid for 2 years from closing.
As previously announced, Mr. James Paterson (the “Lender”), the Chief Executive Officer, a
director and shareholder of the Company agreed to lend the Company up to C$1 million on a revolving basis (the “Bridge
Loan”) in order to allow the Company to continue its operations until the closing of the Offering. The total amount
advanced by the Lender under the Bridge Loan as of the expiry date of the Offering was $610,000. The acquisition cost of 5,462,500
Common Shares acquired by the Lender pursuant to the standby commitment was satisfied by the reduction of the amounts payable to
the Lender pursuant to the Bridge Loan. The net proceeds of the Offering will be used to repay the remainder of the Bridge Loan and
any portion of the proceeds of the Offering not required to repay the Bridge Loan will be applied as described in the Offering
circular dated December 3, 2018.
About ValOre Metals Corp.
ValOre Metals Corp. (TSX?V: VO) is a Vancouver based company with a portfolio of high?quality uranium and
precious metal exploration projects in Canada. In addition to the Baffin Gold Property, ValOre holds Canada's highest?grade uranium
resource outside of Saskatchewan. ValOre’s 89,852 hectare Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI
43?101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. ValOre's comprehensive
exploration programs have demonstrated the "District Scale" potential of the Angilak Property. For disclosure related to the
inferred resource for the Lac 50 Trend uranium deposits, please refer to ValOre's news release of March 1, 2013.
In Saskatchewan, ValOre holds a 100% interest in the 13,711 hectare Hatchet Lake Property and a 50% interest in
the 131,412 hectare Genesis Property, both located northeast of the north?eastern margin of the uranium?producing Athabasca
Basin.
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, Canada 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 toll free at 1.888.331.2269, at
604.646.4527, or by email at info@valoremetals.com.
ValOre Metals Corp. is a member of the Discovery Group of Companies, for more information please visit: 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, including statements
regarding the use of proceeds of the Offering. 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 the Company 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.