Proactive Investors - Run By Investors For Investors

Valor Resources confirms favourable amendment to Berenguela acquisition terms

This is yet another sign of ongoing support for Valor from its largest shareholder SSR Mining Ltd.
Berenguela Project in Peru
Berenguela Project in Peru

Valor Resources Ltd (ASX:VAL) has revealed a positive update on the terms of its acquisition of the Berenguela Project in Peru from SSR Mining Ltd, which settled in May 2017.

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.

READ: Valor Resources advancing polymetallic project in Peru as positive news flow continues

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.

READ: Valor Resources raises $3 million from high-quality investors

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.

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.”

View full VAL profile View Profile

Valor Resources Ltd Timeline

Related Articles

Drilling equipment on a Yandal site last year in 2018
January 10 2019
The ASX newcomer is backed by Northern Star Resources which holds a 15% stake.
Map of McDermitt Lithium Project in the US
November 20 2018
An exploration target range has been established for the McDermitt project in the US.
Picture of drill rig
May 03 2018
The Strickland project covers over 100 strike kilometres of greenstone belts and straddles the Evanston and Yuinmery Shear Zones.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use