Valterra Announces Private Placements to Fund Drilling at Bobcaygeon
June 12, 2013 — VANCOUVER, BRITISH COLUMBIA (Source: Marketwired) — NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Valterra Resource Corporation (“Valterra”) (TSX VENTURE:VQA)(OTCBB:VRSCD)(FRANKFURT:3VA) reported today that it plans to issue up to 7,000,000 units in a non-flow-through private placement at a price of $0.06 per unit for gross proceeds of $420,000. Each unit consists of one common share and one share purchase warrant, with each whole share purchase warrant exercisable to purchase one additional common share at an exercise price of $0.10 for a period of 3 years.
Valterra also announces a flow-through private placement of up to 7,000,000 flow-through shares to Canadian resident investors, with each flow-through share priced at $0.07 to raise gross proceeds of $490,000 with the gross proceeds utilized for Canadian exploration expenses, within the meaning of the Income Tax Act (Canada), related to the exploration during 2013 of Valterra’s +160 sq. km Bobcaygeon graphite project in southern Ontario and other eligible exploration expenses, with expense renunciations on December 31, 2013.
Proceeds from the private placements will be utilized for eligible Canadian exploration expenses incurred on the Bobcaygeon Graphite Property located in Southern Ontario. Recent exploration has generated several high-grade, high-purity, flake graphite drill targets from prospecting, shallow trenching and ground geophysics programs. One prospective anomaly covers an 800m x 400m area, being co-incident with the Discovery Zone and remains open for expansion. A Phase I drill program totaling up to 2,500m is proposed for 2013 to extend the Discovery Zone and test newly identified targets located up to 23km on-strike from the main zone. Historical geological data indicates widespread accessory graphite throughout the regional host stratigraphy and suggests strong exploration potential within these areas.
Contingent on initial results, Valterra has also planned for expanded geophysical work, continued metallurgical testing and prospecting to cover the large property package. Net proceeds from the Non-Flow-Through Offering will be used for property payments, general working capital and for exploration expenses. Valterra reserves the right to expend the funds on any other eligible Canadian exploration property.
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Graphite is a naturally occurring form of carbon with wide-ranging and unique physical properties. It is an excellent conductor of heat and electricity and has outstanding lubrication properties and is very resistant to chemical corrosion. Graphene is derived from graphite and is one of the strongest and lightest known substances with a tensile strength 200 times the strength of steel. The industrial development of graphene is at an early stage but will eventually become a replacement for several expensive electronic components such as silicon semi-conductors. Graphite occurs naturally as – vein, flake, and amorphous where the highest quality product can command prices in excess of $2,000 per tonne. In pricing graphite, the flake size and purity are key factors with the large flake at +0.178mm and purity at +99% C(g) commanding the highest prices in markets dominated by multi-national eco-automobile manufacturers, high-tech industries and nuclear energy companies. Recent pricing and demand increases have accelerated numerous exploration and investment opportunities in the graphite market.
The Province of Ontario is an excellent locale to explore owing to superior geology, geoscience knowledge, infrastructure, political stability and tax incentives. Several projects are advancing in the graphite field including Northern Graphite Corporation, Zenyatta Ventures Inc. and Ontario Graphite Ltd.
About Valterra Resource Corporation
Valterra is focussed on graphite, gold, copper and silver properties in Canada with the potential to host large deposits, in regions with excellent infrastructure. Over the last several years, Valterra has acquired and is exploring several key projects including “Bobcaygeon”, “Star-Toughnut” and “Swift Katie”. The Bobcaygeon property covers an area of over 160 sq. km in Southern Ontario, and is hosted in rocks of the Grenville geological province where most of the known significant graphite deposits occur. The “Star-Toughnut” and “Swift Katie” projects are Au-Cu-Ag properties with bulk tonnage potential in south-eastern BC.
Valterra is a Manex Resource Group Company. The group provides expertise in exploration, administration, and corporate development services for Valterra’s mineral properties.
Brian McGrath, P.Geo., is the Qualified Person responsible for reviewing the technical information presented in this release.
On behalf of the Board of Directors,
Frederick Sveinson, President, Valterra Resource Corporation
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for Valterra Resource Corporation’s projects, and the availability of financing for Valterra Resource Corporation’s development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Valterra Resource Corporation does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Neither 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.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>