ValOre Metals raises $4.14 million from upsized financing
ValOre Metals Corp. [VO-TSXV, KVLQF-OTC, KEQ0-Frankfurt] has closed an upsized non-brokered private placement financing, which has generated gross proceeds of $4.14 million. That’s up from an earlier $3.5 million target.
Under the terms of the financing, ValOre issued 55.2 million units priced at 7.5 cents per unit. ValOre has said it intends to use the net proceeds from the offering for exploration on the company’s 100%-owned Pedra Branca PGE (platinum group element) project in northeastern Brazil and for general working capital purposes.
Each unit consisted of one common share and one transferable common share purchase warrant. Each warrant can be used to acquire one share at a price of 10 cents per share for 36 months from the date of issuance, subject to an acceleration clause.
The company retains the option to accelerate the expiry date of the warrants if the 20-day volume weighted average trading price of the shares on the TSX Venture Exchange is equal to or greater than 15 cents at the close of any trading day. All warrants that remain unexercised following the accelerated expiry date shall immediately expire and all rights of the holders will be terminated without compensation.
News that the financing has closed came after the close of trading on October 8, 2024, when ValOre shares closed at $0.07. The shares trade in a 52-week range of $0.095 and $0.035.
ValOre is a Vancouver-based company with a portfolio of exploration projects in Canada and Brazil.
The Pedra Branca project covers 45 exploration licenses over an area of 51,096 hectares. The project hosts seven distinct PGE+Au deposit areas, hosting a 2022 NI 43-101-compliant inferred resource of 2.2 million ounces of 2PGE+Au contained in 63.6 million tonnes of grade 1.08 g/t 2PGE+Au.
The currently known Pedra Branca inferred PGE resources are potentially open-pittable, the company has said.
ValOre has said its team believes the Pedra Branca project has significant exploration discovery and resource expansion potential.
In 2023, ValOre started a broad metallurgical test program on composite samples from the Esbarro Deposit (mineral resource zone, having an inferred resource totalling 403,000 ounces at 1.16 g/t 2PGE+gold in 10.8 million tonnes of ore).
These programs include cyanide leaching, flotation, testwork and re-evaluation of gravity concentration.
The company said metallurgical and mineralogical programs completed to date have revealed a fine-grained nature and a low sulfide association for the platinum group minerals that from in the project’s mineralized zones. Based on this knowledge, the company has embarked on two strategies.
They include an Esbarro flotation testwork program to advance in partnership with the University of Cape Town, including a complete material characterization and rougher test conditions optimization considering lessons learned from previous Blue Coast Research program.
They also include a Glycine leaching test to commence at Draslovka’s Perth Development Center, Australia, targeting improvement on palladium and platinum leaching extraction from the Esbarro Weathered material.