Valor Resources Ltd (ASX:VAL) has successfully completed a heavily oversubscribed placement to raise $3.4 million.
Existing and new high net worth investors subscribed for 309,090,090 new fully paid ordinary shares in VAL at a price of A$0.011 per new share, which represents a 21% discount to the last closing price of A$0.014 per share on 9 February 2022, and a 23% discount to the 15-day volume-weighted average price of Valor shares to 9 February 2022 of A$0.0142 per share.
Valor is focused on two key projects in Peru and Canada.
Valor’s 100%-owned Peruvian subsidiary, Kiwanda SAC holds the rights to the Picha and Corona Projects in the Moquegua Department of Peru, 17 kilometres ENE of the Chucapaca (San Gabriel – Buenaventura) gold deposit. They are two copper-silver exploration projects comprising 19 granted mining concessions for a total of 13,830 hectares (138 square kilometres).
Valor is the 100% owner of the following interests:
➢ Right to earn an 80% working interest in the Hook Lake Uranium Project 60 kilometres east of the Key Lake Uranium Mine in northern Saskatchewan. Covering 25,846 hectares, the 16 contiguous mineral claims host several prospective areas of uranium mineralisation; and
➢ 100% equity interest in 19 contiguous mineral claims covering 62,233 hectares in northern Saskatchewan. The property is 7 kilometres east of the former-producing Cluff Lake Uranium Mine and much of the project area is located within the Carswell geological complex that hosts the Cluff Lake Mine.
Valor has five additional projects within the Athabasca Basin with 100% equity interest in 12 mineral claims covering 10,512 hectares at the Surprise Creek Project, Pendleton Lake Project, Smitty Uranium Mine, Lorado Uranium Mine and the Hidden Bay Project.
Ramping up exploration in Peru and Canada
The company is now well funded for all its projects in Canada and Peru.
Proceeds from the placement will be used to undertake:
➢ exploration activities at its Peru Picha Project;
➢ non-exploration expenses for the Canadian Projects; and
➢ for general working capital purposes.
Further to this, interpretation of 2021 exploration activities is being finalised, including a drill plan, targeting a September quarter start date.
“This funding provides the company with the ability to progress both the Canadian Uranium projects and the Peruvian Picha Copper/Silver Project.
"In December, the company raised A$5.4 million through the Canadian Flow Through Scheme for direct exploration expenditure on the Canadian Uranium exploration portfolio,” Valor’s executive chairman George Bauk, said.
“The company has commenced drilling and is planning an airborne gravity survey in April on the Hook Lake Project. At Cluff Lake, data compilation is well advanced along with permitting allowing for exploration to commence in the June quarter.
"At the other five Uranium projects in the Athabasca Basin, data compilation has commenced. This week Cameco announced plans to recommence mining at its McArthur River/Key Lake operations by 2024.
“2021 was an exciting time for the company at its Picha Project. During the year, many samples were taken along with a detailed mapping program over the entire 20 square kilometres project area.
"The year was completed with an IP and ground-based magnetic survey and this along with the other data collected will be compiled into an interpretation with proposed drilling to be undertaken in the September quarter.
"Permitting is progressing well and in the past week, we commenced environmental studies on the project area. As recently announced, we have also increased our land holding from 20 square kilometres to over 200 square kilometres.
Whilst we are finalising our plans for the upcoming drilling program, we will commence exploration activities on the recently granted concessions surrounding the Picha Project.”
Read: Valor Resources expands landholding at copper-silver project in Peru