- Valterra Resource Corp. (VQA) completes its sale of Poconé Mining Minerçã Ltda. to Pilar Gold Inc.
- Pilar Gold Inc. holds a 100 per cent interest in the Lima gold property and a binding agreement to purchase a 100 per cent interest in the Livramento gold property which are located in Brazil
- Valterra assigned all its rights and obligations to Pilar Gold under a purchase agreement on September 3
- Pilar Gold issued 4 million common shares in the capital of Pilar Gold at a deemed price of $0.60 per share representing a price of $2.4 million for the 100 per cent of Valterra’s interest in the purchase agreement
- Valterra issued the vendors 4.5 million common shares at a deemed price of $0.05 per share in settlement of the outstanding amount of $225,000 in respect of consulting agreements compensation under the purchase agreement
- Valterra Resource Corp. (VQA) is unchanged, trading at $0.04 per share at 10:57 a.m. ET
Valterra Resource Corp. (VQA) has completed the sale of Poconé Mining Minerçã Ltda. to Pilar Gold Inc.
Pilar Gold Inc. holds a 100 per cent interest in the Lima gold property and a binding agreement to purchase a 100 per cent interest in the Livramento gold property which are located in Brazil.
Valterra assigned all its rights and obligations to Pilar Gold under a purchase agreement dated September 3.
The purchase agreement provided states Valterra would purchase all the outstanding quotas of Poconé
Pilar Gold issued 4 million common shares in the capital of Pilar Gold at a deemed price of $0.60 per share representing a price of $2.4 million for the 100 per cent of Valterra’s interest in the purchase agreement.
The issuance is subject to upward adjustment contingent upon the issue price of Pilar Gold’s proposed initial public offering.
Pilar Gold assumed the remaining acquisition payments for Poconé’s Livramento project for BRL$15 million.
Valterra issued to the Poconé vendors 8 million common shares and 8 million share purchase warrants exercisable to purchase one common share of Valterra at $0.10 for four years.
Valterra also issued the vendors 4.5 million common shares at a deemed price of $0.05 per share in settlement of the outstanding amount of $225,000 in respect of consulting agreements compensation under the purchase agreement.
Jeremy Gray, CEO of Pilar Gold, commented “Pilar Gold has an existing resource base of over 3 million ounces with significant exploration upside, and we intend to build Pilar Gold into a major gold producer in Brazil, with Equinox Gold Corp. as a supportive long-term shareholder.”
“I am confident that Valterra will see the value of its equity stake in Pilar Gold appreciate substantially once we complete our going public transaction, hopefully in the early part of 2022,” he said.
Valterra Resource Corp. (VQA) is unchanged, trading at $0.04 per share at 10:57 a.m. ET.
