Valor Resources Ltd (ASX:VAL) has issued 311.5 million shares as part of its recently outlined share placement to sophisticated investors to raise $3 million.
It is intended that the funds from the placement will be used for advancing the pre-feasibility study (PFS) underway on the Berenguela Project in south Peru.
In accordance with the terms of the acquisition of Berenguela in May 2017, 31.5 million shares of the 311.5 million were issued to the project vendor so it can maintain a 9.9% equity interest in Valor.
Directors subscribed for $200,000 worth of placement shares
Notably, 20 million additional placement shares are planned to be issued to directors subject to receiving shareholder approval.
Earlier this month, Valor’s chairman Mark Sumner said: “At this stage the company is focused on driving the project into PFS and advancing the development of Berenguela.
“The completion of our first stage of metallurgical test work and defining the flow sheet is a major milestone, and allows us to continue into more detailed ore variability testing across the Berenguela sections.
“This will be a major step in the PFS process."
Corona West discovery within Berenguela project
Sumner added: “We are also very excited to add Corona West, as our second discovery this year.
“Corona and Corona West both have the potential to be significant satellite deposits within close proximity to Berenguela Central, and present an opportunity to add resources to project as we move through PFS.
READ: Valor Resources identifies high-grade copper-silver-manganese at Corona West
“We believe there are two very clear paths to create value in our asset base.
“First, by advancing Berenguela through PFS, and second, by generating new high grade, surficial targets with inexpensive surface sampling and geological mapping.
“This is paving the way for a very exciting period for Valor.”