Valkea upsizes private placement financing to $4.0 million
Valkea Resources Corp. [OZ-TSXV, OZBKF] has increased the size of a previously announced non-brokered private placement, which is now expected to raise gross proceeds of $4.0 million, up from the earlier $3.0 million target.
The upsized offering will consist of up to 16 million units priced at 25 cents per unit. Each unit consists of one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of 35 cents for 18 months following the closing date. However, company can accelerate the expiry date of the warrants if the share price exceeds 50 cents for 10 consecutive days during the exercise period.
The shares were unchanged at 30 cents on Wednesday and trade in a 52-week range of 58 cents and 19 cents.
Valkea is focused on gold exploration in Central Lapland and Northern Finland. The company is advancing multiple projects in a region that is quickly gaining recognition as a global hotspot.
Key players in the region include Agnico-Eagle Mines Ltd. [AEM-TSX, AEM-NYSE] and Rupert Resources Ltd. [RUP-TSX]. Rupert’s Finland properties are adjacent to the Kittila gold mining operations of Agnico-Eagle, which hold a significant stake in the junior.
Rupert was in the news recently when it announced details of a $45 million bought deal equity financing and concurrent private placement. The company said net proceeds will be used for continuing exploration expenditures, technical and environmental studies on the company’s properties in Finland.
Rupert recently announced the results of a pre-feasibility study (PFS) for its 100%-owned Ikkari project. Highlights of the PFS include a probable mineral reserve of 52 million tonnes at 2.1 g/t or 3.5 million ounces. The company said that represents an 85% mineral resource to mineral reserve conversion.
The PFS envisages a 20-year life of mine, consisting of an open pit operation for the first 10 years with average annual production of 227,000 ounces annually, transitioning to an underground operation in years 10 to 20.
Ikkari is part of the Rupert Lapland Project, which also includes the Pahtavaara gold mine, mill, and exploration permits, plus concessions, which are located in the Central Lapland Greenstone Belt
In a press release on February, 27, 2025, Valkea announced drill results from its inaugural exploration drill program at its 100%-owned Paana project in Lapland, Finland. The 1,997 metre-six hole program targeted both high grade (Kittila-style) and bulk tonnage (Ikkari-style), disseminated gold mineralization at the Aarnivalkea West discovery.
Valkea is strategically positioned with a dominant land position next to Kittila, Europe’s largest gold producer and proximal to the development stage Ikkari project. The region has become globally significant for gold exploration and discovery and is experiencing a surge in recent exploration, including neighbouring projects controlled by B2Gold Corp. [BTO-TSX, BTG-NYSE American, B2G-NSX] and Kinross Gold Corp. [K-TSX, KGC-NYSE].