Valterra to acquire Lima gold project in Brazil

Mine in the Poconé district. (Image courtesy of Valterra Resource).

Valterra Resource Corporation (OTCQB: VRSCF) reported that it plans to issue up to a total of 15 million units in a non-brokered private placement at a price of $0.05 per unit for gross proceeds of C$750,000. 

In its announcement, Valterra said that net proceeds from the private placement will be used to acquire a private Brazilian company that has a purchase agreement to acquire a 100% interest in the 172-hectare freehold Lima property for a purchase price of C$500,000, as well as initial exploration work in preparation for bulk sampling at Lima, and for general working capital.

The Poconé Mining District reportedly produces over 250,000 ounces of gold annually from 17 different active laterite mines

“Management believes that this is a rare opportunity to acquire a highly-prospective gold property at exceptionally attractive terms which has the potential to be fast-tracked to production,” Valterra said in a media release. 

According to the Canadian miner, Lima is a laterite-type gold project with easy logistics in the Poconé district of the western Mato Grosso state. 

“The project comes with a proven operational team in a mature mining district with very attractive economics,” the brief states. “Existing mines in the district require no blasting as a result of deep weathering and consist of free-digging open-pit operations, typically to a depth of up to 80 metres.”

Lima is immediately adjacent to the currently producing Edmur gold mine.

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