Valterra Announces Financing and Star-Toughnut Exploration Proposal
September 27, 2012
Valterra Resource Corporation (“Valterra”) reported today that it plans to issue up to 4,000,000 units in a non-flow-through private placement at a price of $0.15 per unit for gross proceeds of $600,000. Each unit consists of one common share and one share purchase warrant, with each share purchase warrant exercisable to purchase one additional common share at an exercise price of $0.20 for a period of 2 years.
Valterra also announces a flow-through private placement of up to 4,000,000 flow-through shares to Canadian resident investors, each flow-through share priced at $0.15 to raise gross proceeds of a maximum of $600,000 with the gross proceeds utilized for Canadian exploration expenses, within the meaning of the Income Tax Act (Canada), related to the exploration during 2012-2013 of Valterra's Star-Toughnut project in British Columbia and other eligible exploration expenses, with expense renunciations on December 31, 2012.
Proceeds from the private placements will be used to fund planned drill programs on Valterra’s mineral exploration projects in south-eastern British Columbia and for working capital. Finder’s fees may be payable. The private placements and finder’s fees are subject to regulatory approval.
2012 Exploration Proposal for Star-Toughnut, Southeast BC
Located in the heart of the Silver King Shear zone the Au-Ag-Cu Star-Toughnut property encompasses approximately 2,045 hectares and is centrally located in an emerging gold belt. Active programs in the infrastructure-rich area are beginning to define over 1.25M ounces of NI-43-101 compliant gold resources and the mineral claim packages are undergoing rapid consolidation.
Valterra has budgeted approximately $600,000 to actively drill and trench some of the key targets on the claims with the Gold Eagle zone representing the primary target. In 2010, Valterra made two significant Au-Ag discoveries at the zone (see NR-03-11).
Select high grade/bulk tonnage drill highlights at the Gold Eagle zone included:
- VTN10-008 (Gold Eagle): 4.02 g/t Au & 9.51 g/t Ag over 24.33m
Including 7.76 g/t Au & 20.29 g/t Ag over 9.11m
Including 14.47 g/t Au & 34.60 g/t Ag over 4.0m
- VTN11-010 (Gold Eagle): 1.22 g/t Au & 2.71 g/t Ag over 29.72m
The first Au-Ag drill discovery was a near surface BTW-core intercept which was marked by shallow, pyrite-enriched mineralization hosted in a strongly bleached, k-feldspar-sericite-silica altered crackle breccia/andesite of the Upper Elise Formation. During 2011, Valterra expanded the zone further and currently possesses valid permits allowing for drilling of up to 10,500 metres (see NR-08-11).
The gold-silver mineralization appears to project vertically beneath an anomalous surface outcrop which yielded 4.73 g/t Au and 8.2 g/t Ag in a 2010 grab sample. Valterra’s also permitted to conduct a small-scale trenching program over the discovery outcrop. The focus of the proposed trenching will be to increase the surface exposure of the zone and facilitate expanded mapping, sampling and drilling along the mineralized trends.
The second zone (hole VTN10-006 - 1.80 g/t Au over 6.44m) returned anomalous mineralization from a basal contact between a feldspar porphyry (Silver King suite) and andesitic rocks. This newly discovered zone may be analogous to precious metal zones identified at the adjacent Kena Project which is currently optioned by Altair Gold Inc.
To date, five holes have been drilled at the Gold Eagle zone where the highest grade intercept is only 40 metres below surface, and the mineralization is open at depth and along strike. The signature of the rocks is generally consistent with a zoned porphyry model subjected to shortening, shear-fault/hydrothermal activity, and extensions that generated focused zones of higher-grade.
Targeting at the Star-Toughnut has been aided by several prior technical programs implemented by Valterra including a comprehensive technical (compilation) report, a 30 square kilometre airborne EM-MAG survey which was flown by Aeroquest Ltd., and the resulting airborne data was subjected to detailed processing analyses by a geophysical consultant.
About Valterra Resource Corporation
Valterra is a Manex Resource Group Company. The group provides expertise in exploration, administration, and corporate development services for Valterra’s mineral properties located in British Columbia and Ontario. Valterra is focussed on early stage properties with the potential to host large deposits, in regions with excellent infrastructure. Over the last several years, Valterra has acquired and explored several key projects including “Star-Toughnut”, “Swift Katie” and “Bobcaygeon” which are located near roads, rail, power, and resource communities in Canada.
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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
For further information, please visit Valterra’s website at valterraresource.com or contact Liana Shahinian at 1.888.456.1112 or 604.641.2773 or by email at email@example.com.
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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.
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.