Valor Resources will examine its high-grade energy metal assets portfolio in detail, including continuing to hunt for uranium in Canada’s world-class Athabasca Basin while kicking off plans for drilling prolific copper-silver territories in Peru later this year.
The timely exploration unfolds as the uranium sector strengthens, with Cameco recently announcing plans to recommence mining at its McArthur River’s Key Lake in Saskatchewan, Canada, by 2024.
Hook Lake is the shining light of the stable of Canadian uranium projects. The company retains the right to up to 80 per cent working interest for a good reason, with rock chips showing 59.2pc triuranium octoxide, 499 grammes per tonne of silver, 5.05pc total rare earth.
The Picha copper-silver project, located in the world’s second-largest producer of copper and silver, Peru, has returned ground-based results of up to 6pc copper and up to 563 g/t silver.
Last year’s detailed geological mapping program over the project’s original 20-square- kilometre land holding will be compiled into an interpretation, with drilling proposed to commence in the September quarter.
Meanwhile, permitting is advancing on the massively expanded landholding, with exploration commencing across the extended area leading up to drilling.
Valor said the CPS Capital lead raising of 309,090,090 new shares at 11c provides the ability to progress its projects in Canada and Peru.
“In December, the company raised A$5.4m through the Canadian Flow-Through Scheme for direct exploration expenditure on the Canadian Uranium exploration portfolio,” executive director 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 5 Uranium projects in the Athabasca Basin, data compilation has commenced.”
The New Shares will be issued utilising Valor’s placement capacity under Listing Rule 7.1A and accordingly no shareholder approval is required in connection with the Placement.
The New Shares will rank equally with the Company’s existing fully paid ordinary shares.
The New Shares will be issued at A$0.011 which represents a 21pc discount to the last closing price of Valor shares on 9 February 2022 of A$0.014 per share and a 23pc discount to the 15-day volume weighted average price of Valor shares to 9 February 2022 of A$0.0142 per share.
The New Shares issued under Listing Rule 7.1A will be issued to sophisticated investors under a placement and not a pro-rata issue as it was the most efficient mechanism for raising capital for the Company at this time.
CPS acted as advisor to the Company under a corporate advisory mandate. Under the mandate, CPS will receive a Corporate Advisory fee of $6,000 per month for a minimum term of twelve months and a 2pc Management fee and 4pc Placement Fee of funds raised under the Placement.
In addition, CPS (or Nominee) will receive 51,000,000 unlisted options exercisable at A$0.02 with an expiry date of two years from the date of issue (New Options) for managing and arranging the Placement, to be issued on the terms and conditions set out in this announcement below.
The New Options will be issued utilising Valor’s placement capacity under Listing Rule 7.1 and accordingly no shareholder approval is required in connection with the New Options.
“We are proud to continue our association with Valor and are pleased to have arranged the funding, and to see the placement was in such high demand, to enable the Company to fund its exploration activity to potentially add substantial value for shareholders,” CPS managing director Jason Peterson said.
An Appendix 3B Proposed Issue of Securities has been lodged with the ASX. This is the ASX announcement referred to in the Trading Halt request lodged with the ASX on 9 February 2022.
VAL’s Australian Stock-Exchange-listed share price was trading at 1.4c today (7:30 am UTC+ 8 hours).