Valterra Resource Corporation: Financing Announced; Bobcaygeon Project Expanded
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 10/01/13 -- Valterra
Resource Corporation ("Valterra") (TSX
VENTURE:VQA)(OTCBB:VRSCD)(FRANKFURT:3VA) reports that it has entered
into a share exchange agreement with Global Resources Investments
Ltd. ("GRIL"), an arm's length party to Valterra.
GRIL has been established to exploit investment opportunities in the
junior mining and natural resources sectors worldwide, with an
investment objective to generate medium and long-term capital growth.
GRIL will re-register as a public company and be constituted as an
investment trust with the name Global Resources Investment Trust Plc
("GRIT") and seek admission of its ordinary shares on the main market
for listed securities on the London Stock Exchange.
Pursuant to the share exchange agreement, GRIT will issue and deliver
to Valterra 186,069 ordinary shares of GRIT at a deemed price of GBP
1.00 per share (the "GRIT Shares") in exchange for the issuance of
6,000,000 units of Valterra at a deemed price of GBP 0.031
(approximately $0.05) per unit. Each unit consists of one common
share and one common share purchase warrant exercisable at $0.07 per
share for a period of 2 years. Valterra will, at its election, sell
the GRIT Shares through the facilities of the London Stock Exchange
to realize proceeds of the transaction.
Closing of the transaction is subject to a number of conditions
precedent, including approval of the TSX Venture Exchange, and GRIT
successfully listing on the London Stock Exchange.
Valterra has added 9 new claims totalling 55 units to the Bobcaygeon
project located in Southeast Ontario. The claims have now been
processed and registered with the Ontario government. The property
now totals 172 claims, 9 patents and 4 leases for a total of 19,506
hectares (195.1 sq km), located within the Galway, Cavendish,
Glamorgan, Anstruther, Cardiff and Monmouth townships.
The new claims reflect the continued expansion of the claim group on
its northern boundary and in particular the areas around the newly
identified Crystal and Salerno graphite occurrences located 10 km and
23 km respectively along strike and to the northeast of the Discovery
trench. Assay Results from reconnaissance sampling on these
occurrences (as reported in NR-11-13, June 5th, 2013) returned both
high-grade graphite (up to 15% Cg over 1.5 metres) and multiple
values greater than 1%Cg. Historical geological data indicates
widespread accessory graphite throughout the host stratigraphy
including the visual identification of graphite in diamond drill
holes and suggests strong exploration potential within these areas.
Initial sampling in the Discovery Zone area returned assays of up to
69.1% Cg in grab sample and up to 36.8%Cg over 1.5 metres in channel
The Salerno and Crystal zones are associated with the Salerno Creek
Deformation Zone (SCDZ) that forms a major tectonic boundary between
the Bancroft Terrane and Harvey-Cardiff Arch. The terrane contact
hosts the majority of past-producing graphite mines and significant
graphite occurrences in the belt; and, the deformation zones are
within major regional-scaled fault complexes.
Since the identification of high-grade graphite on the property in
late 2012, Valterra has continued to advance the project through the
early exploration stage and metallurgical evaluation. Completed work
includes reconnaissance mapping and prospecting resulting in the
identification of four new discoveries including the 1.75km-long
Corridor zone, located 1 km to the north of the original graphite
discovery and the Crystal and Salerno Occurrences referred to in the
Surface IP geophysics over a 10 line-kilometre grid covering the
initial graphite discovery has identified an 800m x 400m
chargeability anomaly which remains a primary drill target. Several
shallow drill holes were completed in the area of the discovery
trench in order to better define the geology, structural controls and
lens geometry in this overburden dominated area. High-grade, near
surface drill results (6.36% Cg over 3.38m; including 31.90% Cg over
0.53m in hole BOB13-004, see NR-08-13) suggest that the target
graphite horizon may be flat-lying or gently undulating; or that
multiple target horizons exist in this area. Valterra is planning to
conduct additional drilling, geophysics and prospecting in the area
near the Discovery Zone and regionally within the district-scaled
Metallurgical Testing Summary
Several stages of Metallurgical testing were conducted on a +20kg
sample from the Discovery Zone area in order to help evaluate the
marketability of potential graphite products from the Bobcaygeon
property and resulted in the identification of an ultra-high-purity,
fine-flake graphite concentrate grading 99.97% C and medium to jumbo
flake concentrates grading +94% Cg. The fine-flake flotation
concentrate was subjected to a two-stage leach process followed by
LOI analyses on the leach residue.
Previously reported highlights from metallurgical work conducted at
SGS Lakefield includes:
-- 55.9% of the concentrate separates into the fine-flake category (-150
mesh) which through further leach testing produced the ultra-high purity
analysis reported above.
-- 31.7% of the concentrate separates into the large and jumbo flake
categories (+80 mesh or greater than 0.178mm) grading 94.9% C by LOI.
This includes 14.6% of the concentrate at a +48 mesh (jumbo flake)
grading 94.7% C by LOI.
-- 12.4% of the concentrate separates into the medium-flake category (-80
to +150 mesh) grading 96.3% C by LOI.
-- 34% Cg head-grade was returned in trench float sampling of primarily
flake graphite with flakes of up to 3mm in length.
These Preliminary flotation and leaching test results demonstrate the
potential to produce marketable, very high-margin natural graphite
products utilizing industry-standard processing techniques from the
entire concentrate, including the ultra-high-purity fine-flake
fraction. Only flake graphite with purity of 99.9% is suitable for
Li- ion battery manufacturing which is currently dominated by
high-cost synthetic graphite. Current synthetic prices range from
US$7,000-20,000 per tonne and Valterra is targeting this market with
natural graphite products that may provide a distinct cost advantage.
Future Exploration at Bobcaygeon
Year-one successes from prospecting, trenching, metallurgy,
geophysics and diamond drilling have defined numerous targets
property-wide that merit exploration in 2013/14. Valterra has
budgeted C$500,000 to $750,000 and is planning to conduct additional
exploration in the Discovery Zone area and regionally within the
district-scaled property. Preliminary plans are highlighted by
diamond drilling of between 2,000 to 2,500m.
Recent metallurgical reports, ground-geophysical data, updated
corporate presentations and photographs are available on Valterra's
website at www.valterraresource.com.
Graphite is a naturally occurring form of carbon with wide-ranging
and unique physical properties. Graphene is derived from graphite and
is one of the strongest known substances with a tensile strength 200
times the strength of steel. The industrial development of graphene
is at an early stage but will eventually become a replacement for
several expensive electronic components such as silicon
semi-conductors. There are three natural primary graphite occurrences
- vein, flake, and amorphous where the highest quality product can
command prices in excess of $2,000 per tonne. In pricing graphite,
the flake size is a key factor with the large flake (greater
than.178mm) ores commanding the highest prices in markets dominated
by multi-national eco-automobile manufacturers, high-tech industries
and nuclear energy companies. Recent pricing and demand increases
have accelerated numerous exploration and investment opportunities in
the graphite market.
The Province of Ontario is an excellent locale to explore owing to
superior geology, geoscience knowledge, infrastructure, political
stability and tax incentives. Several projects are advancing in the
graphite field including Northern Graphite Corporation, Zenyatta
Ventures Inc. and Ontario Graphite Ltd.
The Bobcaygeon property is hosted in rocks of the Grenville
geological province which hosts most of the known significant
graphite deposits in Canada.
Frederick Sveinson has tendered his resignation as President of
Valterra in order to pursue other opportunities. The board of
directors thanks Mr. Sveinson for his valuable contributions to
Valterra and wishes him every success in the future. Lawrence Page Q.
C., Chairman, will act as interim President pending designation of a
President with specific knowledge of development and marketing in the
About Valterra Resource Corporation
Valterra is a Manex Resource Group Company. The group provides
expertise in exploration, administration, and corporate development
services for Valterra's mineral properties located in British
Columbia and Ontario. Valterra is focussed on early stage properties
with the potential to host large deposits, in regions with excellent
infrastructure. Over the last several years, Valterra has acquired
and is exploring several key projects including "Star-Toughnut",
"Swift Katie" and "Bobcaygeon" which are located near roads, rail,
power, and resource communities in Canada.
Robert Macdonald, MSc., P.Geo., is the Qualified Person responsible
for reviewing the technical information presented in this release.
On behalf of the Board of Directors,
Lawrence Page, QC, Chairman, Valterra Resource Corporation
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including
but not limited to comments regarding the timing and content of
upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, etc.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Actual results
may differ materially from those currently anticipated in such
statements. These statements are based on a number of assumptions,
including, but not limited to, assumptions regarding general economic
conditions, interest rates, commodity markets, regulatory and
governmental approvals for Valterra Resource Corporation's projects,
and the availability of financing for Valterra Resource Corporation's
development projects on reasonable terms. Factors that could cause
actual results to differ materially from those in forward looking
statements include market prices, exploitation and exploration
successes, the timing and receipt of government and regulatory
approvals, and continued availability of capital and financing and
general economic, market or business conditions. Valterra Resource
Corporation does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
Valterra Resource Corporation
1.888.456.1112 or 604.641.2773
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