Valterra Closes Second Tranche of Private Placements
January 5, 2011
Valterra Resource Corporation (VTA.CNSX) reported today that it has closed the second tranche of its private placements for gross proceeds of $226,750.
Valterra issued 2,810,000 units in a flow-through private placement at a price of $0.05 per unit (“Flow-Through Unit”) for gross proceeds of $140,500, and issued 1,725,000 units in a non-flow-through private placement at a price of $0.05 per unit (“NFT Unit”) for gross proceeds of $86,250. Each Flow-Through Unit consists of one flow-through common share and one-half share purchase warrant, with each whole warrant (a “Warrant”) exercisable to purchase one non-flow-through common share at an exercise price of $0.10 per share for a period of two years. Each NFT Unit consists of one non-flow-through common share and one Warrant exerciseable to purchase one non-flow through common share at an exercise price of $.10 per share for a period of two years.
Proceeds from the private placements will be used to fund future drill programs on Valterra’s Au-Ag-Cu mineral exploration projects located in the Nelson Mining camp of south-eastern British Columbia and for working capital. The private placements and finders’ fees are subject to regulatory approval. All securities issued pursuant to the second tranche closing of these private placements, including common shares, share purchase warrants, and finders’ warrants issued as finders’ fees, carry a legend restricting trading of the securities until May 1, 2011.
Exploration is expected to focus mainly on the drilling of several zones within the Au-Ag-Cu Star, Toughnut, and Rozan properties (“Star Project”) t
hat are contained in a prospective land package covering almost 4,000 hectares. Drill targeting remains active and the tenured region covers a well mineralized 3.5 kilometre trend that is currently defined by a combination of previous wide-spaced drilling, geochemical, and geophysical surveys. In 2010, Valterra completed two phases of drilling on the Star Project totaling 2,274 metres in 11 holes targeting the Toughnut, Eureka, Star, Gold Eagle, and Alma N zones. Recently in December 2010, Valterra completed the Phase II drilling on the project where a total of 836 metres of BTW-sized coring was completed in four holes on the Gold Eagle and Alma N zones; core-logging will continue in January and assays are pending.
Historical (unverified) high-grade assays for drilling conducted in 1988 at the Gold Eagle included 90.0 g/t Au and 80.9 g/t Ag over 1.52m in hole S88-43.
Also, Valterra previously drilled the Alma N zone in 2008 and 2009, where a highlight intercept included 2.12 g/t Au and 1.63 g/t Ag over 44.5m in hole VST09-007
, which contained a higher grade zone of 11.29 g/t Au and 5.6 g/t Ag over 2.0m
. Valterra has currently outlined approximately 250 metres of mineralized strike length to the zone which remains under-explored and open for further expansion. About Valterra Resource Corporation
Valterra is a Manex Resource Group Company
. The Group provides expertise in exploration, administration, and corporate development services for the Company’s mineral properties located in the Kootenay Region of BC.
This region of the province has produced several million ounces of gold and precious metals from numerous past producers. The BC MINFILE records lists such operations as the Rossland Camp (past production estimate of 3.5M ounces of gold), and the Silver King mine - BC’s first lode mine ca. 1888 (reportedly produced 4.4M ounces of silver(1)). Valterra’s claims are centrally located on the Silver King Shear Zone, to the east is the Kena Gold project (1.0M ounce NI43-101 compliant gold resource(2) - Sultan Minerals Inc.), and to the northwest is the Kenville Mine (386,000 ounce NI43-101 compliant gold resource(3) - Anglo Swiss Resources Inc.).
The Company has interests in approximately 11,100 hectares in southeast BC that currently focuses on four primary projects: The Star gold-silver-copper claims, located southwest of Nelson BC and the Toughnut gold-silver-copper-lead-zinc claim block adjoins the Company’s Star claims. In January 2010, Valterra acquired the Rozan gold-silver-lead-zinc property situated just south of the Toughnut. Collectively, the Company has a strong foothold in this part of the belt with over 3,800 hectares under tenure.
Furthermore, the company owns a 60% interest in the Swift Katie copper-gold porphyry/shear-hosted project located near Salmo BC. The project was drill targeted in August 2010 where a total of 786 metres was completed in two NQ2-sized holes collared on multi-parameter geophysical anomalies identified at the 17 and Roaring zones; results disclosure is pending.
Since 2007, Valterra has aggressively explored and expanded its claim blocks within the gold-enriched “Rossland Volcanic Belt” by completing over 9,250 metres of diamond drilling, conducting 810 line-kilometres of heli-borne geophysics, undertaking a variety of mapping-sampling and staking programs, as well as acquiring new properties and joint venturing.
Brian McGrath, P.Geo., is the Qualified Person responsible for reviewing the technical results reported in this release.
On behalf of the Board of Directors,
“Lawrence Page, Q.C.”
Lawrence Page, Q.C., President and Director, Valterra Resource Corporation
For further information, please visit the Company’s website at valterraresource.com or contact Liana Shahinian at 1.888.456.1112 or 604.641.2773 or by email at firstname.lastname@example.org.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. Valterra Resource Corporation relies upon litigation protection for forward looking statements.(1) Historical production/inventory statistics for mines at Rossland and Silver King were obtained from public documents available from the BC Government Mineral Inventory File (MINFILE) database. The reporting standards used in this specific file were obtained prior to the establishment of NI43-101 regulations. Valterra Resource Corporation has not independently verified this historical data. Valterra Resource Corporation has no reason to believe that these results are not representative of mineralization associated with the mining activity.(2) Resource information gathered from the Kena Property Technical Report dated June 3, 2004.(3) Resource information gathered from the Kenville Gold Mine - 257 Level Technical Report dated July 22, 2009.The Canadian National Stock Exchange (CNSX) has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
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. Valterra Resource Corporation relies upon litigation protection for forward looking statements.