ValOre raising $7 million for Nunavut uranium project

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ValOre Metals Corp. [VO-TSXV, KVLQF-OTC, KEQ-Frankfurt] is moving to raise up to $7 million from a private placement deal with proceeds earmarked for its Angilak uranium property in Nunavut.

The announcement came after the close of trading on October 25, 2021, when the shares closed at 48 cents to trade in a 52-week range of 51 cents and 20.5 cents.

The company said it has struck a deal with Red Cloud Securities Inc. for the sale of up to 11.7 million flow-through units to be sold to charitable purchasers at a price of 60 cents per charity unit.

Each unit will consist of one common share to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) and one half of a common share purchase warrant. Each whole warrant will entitle the holder to buy one common share for 65 cents for up to 24 months after the closing date.

ValOre said it has granted the agent an option, exercisable for 48 hours prior to closing, to sell up to 3.3 million additional Charity units at the offering price, a move that could generate additional proceeds of up to $2 million.

In addition, the agent will receive warrants that are exercisable for 24 months to acquire a number of common shares that is equal to 6.0% of the number of Charity FT units sold in the offering at the offering price.

ValOre is a Vancouver-based company with a portfolio of exploration projects in Canada and Brazil.

ValOre recently acquired a platinum group elements property in Pedra Branca, Brazil, to bolster its existing Angilak uranium, Genesis/Hatchet uranium and Baffin gold projects in Canada.

The Pedra Branca is a PGE District located in northeastern Brazil that consists of 38 exploration licenses, covering a total area of 38,940 hectares. At Pedra Branca, the company said five distinct PGE deposit areas contain a NI 43-101-compliant inferred resource of 1.07 million ounces PGE+ gold (palladium, platinum and gold) in 27.2 million tonnes of grade 1.22 grams PGE+Gold per tonne.

ValOre’s 89,853-hectare Angilak Property in Nunavut hosts the Lac 50 Trend, with a NI-43-101 inferred resource of 2.8 million tonnes of grade 0.69% U308 or 43.3 million pounds of U308.

The 100%-owned Baffin Gold Property consists of consolidated mineral tenure approximately 230 southwest of the community of Clyde River on Baffin Island, in the Qikiqtani region of Nunavut. The property consists of 15 prospecting permits, six crown mineral claims and three Inuit-owned parcels.

ValOre describes the project as a district-scale land package covering an entire Proterozoic gold belt with geological and structural similarities to the Homestake Mine in South Dakota. Previous exploration has identified numerous prospects along 140 kilometres of strike length, with high grade gold occurring in multiple settings, including silicate and sulphide iron formation, shear zones and quartz veins, hosted in granodiorite, metavolcanics and metasediments.

The company said an existing camp, tidewater access and two 1,200-metre airstrips will help to accelerate future work programs and potential development.

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