Vendetta Mining Corp. (Vendetta) has closed an additional non-brokered private placement of 11 533 332 units (the Units) at a price of US$0.09 per unit for gross proceeds of AUS$1 037 999.88, forming part of a larger offering of up to AUSUS$1.7 million in gross proceeds (the Private Placement).
Each Unit comprises one common share and one common share purchase warrant exercisable for three years at a price of AUS$0.13 per share. Together with the proceeds from the non-brokered private placement completed on 3 June 2019, the company has now raised US$1 615 249.87, an amount in excess of the US$1.5 million referred to in the company's announcement on 11 March 2019. Net proceeds from the financing will be used to advance the development of the Pegmont lead-zinc project and for general working capital. Total commissions of US$1600 were paid in connection with the completion of this private placement.
Elysium Mining Ltd (Elysium), a private company controlled by Peter Voulgaris, a director of the company, acquired 500 000 units pursuant to the Private Placement and Octavian Capital Corp. (Octavian), a private company controlled by Michael Williams, CEO, President and a Director of the company, acquired 833 333 units pursuant to the private placement. Elysium and Octavian’s participation are considered to be “related party transactions” as defined under Multilateral Instrument 61-101 (MI 61-101). The transactions are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the Private Placement nor the consideration to be received for those securities, in so far as the Private Placement involves Voulgaris or Williams, exceeds 25% of the company’s market capitalisation. The company did not file a material change report more than 21 days before the expected closing of the private placement as the details of the private placement and the participation therein by related parties of the company were not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons and in a timeframe consistent with usual market practices for transactions of this nature.
About the Pegmont lead zinc project
Vendetta’s 100% owned Pegmont lead zinc project is situated in the Mount Isa in McArthur Mineral Province (Australia) which hosts one of the world’s richest endowments of lead-zinc-silver mineralisation, including several significant lead-zinc-silver mines. The current Mineral Resource Estimate at the Project: Indicated 5758 Kt @ 6.5% Pb, 2.6% Zn, 11 g/t Ag Inferred 8277 Kt @ 5.1% Pb, 2.8% Zn, 8 g/t Ag The results of a Preliminary Economic Assessment (PEA) on Pegmont were released by the company by news release dated 28 January 2019. The PEA outlined a 10-year mine plan that generates a strong economic return with a (base case) pre-tax IRR of 32% (after tax 24%) and NPV8% of US$201 million (AUS$128 million after tax) using long term consensus metal prices of US$0.91/lb lead, AUS$1.09/lb zinc and AUS$16.50/oz silver and a AUS$:A$ exchange rate of US$0.75. The PEA indicated a strong sensitivity to metal prices and AUS$:A$ exchange rate with a pre-tax IRR of 37% (after tax 27%) and NPV8% of AUS$249 million (AUS$158 million after tax), using metal prices as of 22 January, 2019 of AUS$0.91/lb lead, AUS$1.18/lb zinc and AUS$15.30/oz silver and a AUS$:A$ exchange rate of AUS$0.71. The PEA identified further project enhancements and Vendetta has identified several high priority exploration targets.
Read the article online at: https://www.globalminingreview.com/finance-business/01082019/vendetta-finalises-non-brokered-private-placement/