Pursuant to the terms of the acquisition Valor was required to raise a minimum of US$8 million no later than February 13, 2018 (end raising date).
The end raising date was subsequently extended to November 13, 2018.
Until the minimum capital raising requirement was satisfied, Valor was to issue to SSR, for nil consideration, the number of shares that would give SSR a shareholding in VAL of not less than 9.9%.
Following Valor’s successful $3 million capital raise in August 2018, the company has raised a total of about $9.25 million (circa US$6.9 million) since the acquisition.
SSR has now waived the requirement for Valor to raise the balance of the minimum capital raising requirement in exchange for a one-off payment of US$ 50,000 to be paid on February 11, 2020.
Accordingly, Valor does not need to raise capital to meet the minimum capital raising requirement.
Milestones and deliverables for the next phase of Project development and Pre-feasibility study. Read the full Project & Corporate update here, https://t.co/jiiyTcouPw #valorresources #mining #report #future pic.twitter.com/aQAu2MHd8K— Valor Resources (@valorresources) October 9, 2018
Valor chairman Mark Sumner said: “We are very pleased to finalise this amendment with SSR.
“SSR are our largest shareholder and as such they clearly accept that raising capital unnecessarily is not in the company’s best interests.
“We view this amendment as yet another sign of SSR’s ongoing support for VAL.”