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Vendetta closes Pegmont option, $2.24-million placement

2014-08-27 18:39 ET - News Release

Mr. Michael Williams reports

VENDETTA MINING CORP. CLOSES THE PEGMONT PB-ZN-AG PROPERTY TRANSACTION AND $2.25 MILLION PRIVATE PLACEMENT

Vendetta Mining Corp. has received final TSX Venture Exchange approval for both its previously announced option deal on the Pegmont lead-zinc-silver deposit in Queensland, Australia, and its concurrent private placement (see news release dated Aug. 11, 2014).

The company has initiated the payment of the initial option payment of $250,000 (Australian) to Pegmont Mines Ltd. (the vendor) and the reimbursement of $300,000 (Australian) in exploration expenditures by the vendor that were incurred to meet minimum Queensland Ministry of Mines required work commitments for the current year during the negotiation period. The company will be completing quality assurance/quality control checks, and the results will follow.

Pegmont lead-zinc deposit

The Pegmont lead-zinc-silver deposit is located 25 kilometres east of BHP Billiton's world-class Cannington silver-lead-zinc mine and 28 kilometres north of Chinova Resources' Osborne copper-gold mine. It is proximate to existing infrastructure that includes roads, railhead and natural gas for power generation.

Financing

The company has closed its oversubscribed non-brokered private placement for aggregate gross proceeds of $2,249,980.46. The company issued units at 26 cents per unit. Each unit in the private placement is composed of one common share and one-half of one share purchase warrant, with each whole warrant exercisable into one additional common share at a price of 35 cents until Aug. 27, 2017.

In connection with the private placement, the company has paid cash finders' fees to certain finders for an aggregate amount of $46,982.44, which is equal to 8 per cent of the total subscription amount of the number of units introduced by the finders to the company.

All securities issued in connection with the financing will be subject to a four-month hold period expiring on Dec. 28, 2014.

New directors

The company has accepted the resignations of two directors: Rob McLeod and Darryl Cardey.

Their places on the board have been filled with the appointment of Peter Voulgaris, BEng, geology (honours), MEngSci, MAusIMM, a mining professional with over 20 years experience in mine operations, development and business development, and Doug Ramshaw, BSc (honours), ARSM, a geologist and former mining analyst with 20 years experience in the industry and capital markets.

In addition, Cale Moodie has been appointed as chief financial officer and Sheryl Elsdon as corporate secretary.

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