Valkea Raises C$2.5M in Private Placement Financing

Executive Summary

• Valkea Resources closed a non‑brokered private placement raising C$2.5 million through the issuance of 10,000,000 units at $0.25 per unit.
• Each unit consists of one common share and half of a common share purchase warrant (exercise price C$0.35, 36‑month term).
• The company also granted 1,000,000 stock options to consultants (exercise price $0.40, five‑year term) and paid $49,500 in finder’s fees with accompanying finders’ warrants.

Key Details

• Financing Size: Gross proceeds of C$2.5 million.
• Units Issued: 10,000,000 units @ $0.25 per unit.
• Unit Composition: 1 common share + ½ warrant (full warrant exercisable at C$0.35 per share).
• Warrant Terms: Exercise price C$0.35; valid for 36 months from closing date.
• Finder’s Compensation: $49,500 cash paid; 198,000 non‑transferable finders’ warrants issued (exercise price $0.35, exercisable until 14 Jan 2029).
• Insider Participation: Directors and officers subscribed for 220,500 units generating $55,000 of gross proceeds.
• Related‑Party Transaction: Treated as exempt from valuation and minority approval requirements under MI 61‑101 (fair market value < C$2.5 million).
• Use of Proceeds: Exploration of the flagship Paana project and general working capital.
• Hold Period: Securities subject to a four‑month plus one‑day hold period per Canadian securities laws; closing pending TSX Venture Exchange final approval.
• Option Grant: 1,000,000 stock options granted to consultants; exercise price $0.40 per share; term 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… With cash in the bank, Valkea is well positioned to launch 2026 focused on execution and advancing our exploration efforts across Central Lapland, Finland.” – Chris Donaldson, CEO & Executive Chairman.