Valkea closes $2.5-million private placement

Executive Summary

• Valkea Resources Corp. has closed a non-brokered private placement raising gross proceeds of C$2.5 million.
• The company issued 10 million units at a price of C$0.25 per unit, with proceeds designated for the exploration of the Paana project and working capital.
• The transaction includes significant insider participation and the issuance of finders' warrants, alongside a separate grant of one million stock options to consultants.

Key Details

• Financing Structure: Non-brokered private placement closed for gross proceeds of C$2.5 million.
• Units Issued: 10,000,000 units issued at C$0.25 per unit.
• Warrant Terms (Investors): Each unit includes one-half of one common share purchase warrant. Warrants are exercisable at C$0.35 per share for 36 months following closing.
• Insider Participation: Directors and officers subscribed for 220,500 units for gross proceeds of C$55,000. This constitutes a related-party transaction under Multilateral Instrument 61-101.
• Finders' Fees: The company paid C$49,500 in cash and issued 198,000 non-transferable finders' warrants.
• Finders' Warrant Terms: Exercisable at C$0.35 per share until January 14, 2029.
• Use of Proceeds: Exploration of the flagship Paana project and working capital purposes.
• Regulatory Status: Securities are subject to a four-month-and-one-day hold period. Closing is subject to final approval of the TSX Venture Exchange.
• Exemptions: The issuance is exempt from formal valuation and minority approval requirements of MI 61-101 as the fair market value was less than C$2.5 million and shares are listed on the TSX Venture Exchange.
• Option Grant: The company granted 1,000,000 stock options to certain consultants.
• Option Terms: Exercisable at C$0.40 per share for a period of five years, subject to regulatory approvals and hold periods.

Notable Quotes

• "We are very pleased to close this $2.5-million financing with strong participation from our existing shareholders, including key holders maintaining their 9.9-per-cent positions," commented Chris Donaldson, chief executive officer and executive chairman. "This level of support reflects continued confidence in Valkea's strategy and our Central Lapland gold portfolio. With cash in the bank, Valkea is well positioned to launch 2026 focused on execution and advancing our exploration efforts across Central Lapland, Finland."