Vendetta Mining Corp. is a Canadian junior exploration company which is currently focused on advancing its 100% owned Pegmont Lead Zinc project in Australia.
Coverage was initiated on December 2019, with notes on July 2020 and April 2021.
News Releases
Apr. 27 - Announces Extending of Loan to Dec 2022: with Nebari Natural Resources Credit Fund I LP.
1) Repayment of the current principal amount of US$1,957,794 extended to December 31, 2022. 2) Principal repayment "holiday" until December 31, 2021, when quarterly principal repayments of US$200,000 commence. 3) Quarterly interest payments calculated at 9.5% plus 3-month LIBOR, with a floor of 2.5%. 4) Vendetta can repay the loan in whole or in part at any time without penalty.
June 9 - Issues Shares in Debt Settlement: Closed a shares for debt transaction pursuant to the terms of a debt settlement agreement entered into with an arms’ length creditor of the Company as previously announced on January 5, 2021. Pursuant to the transaction, the Company settled aggregate debt of $44,625 through the issuance of 686,538 common shares in the capital of the Company at a price of $0.065 per Common Share.
June 23 - Announces Non-Brokered Private Placement: non-brokered private placement of up to 10,000,000 units (the "Units") at a price of $0.05 per Unit for gross proceeds of $500,000. Each Unit will be comprised of one common share and one-half of one common share purchase warrant exercisable for three years at a price of $0.07 per share.
July 15 - Commence Zone 5 Drilling at Its Pegmont Lead-Zinc Project: A ten hole drilling program will commence in late July at the 100% owned Pegmont Lead-Zinc project. The objective of the upcoming ten hole program is to expand the mineralization centered around the PVRD196 intersection, testing a strike length of approximately 500 m.
Aug. 8 - To Acquire Key Killer Bore High Grade Zinc Exploration Tenement: Entered into an option agreement to acquire 100% of the Killer Bore exploration concession 5 km from the Pegmont Lead-Zinc project.
Terms: $102,000 on exploration expenditures prior to the end of the 2nd Anniversary; and $500,000 on exploration expenditure between the start of the 3rd anniversary and prior to the end of the 5th Anniversary; Vendetta shall also grant Sandfire Resources a 2% Net Smelter Returns Royalty over the Property.
Aug. 26 - Closes First Tranche of Its Non-Brokered Private Placement and Announces Increase to $750,000: Increasing its previously announced private placement from 10M units to 15M units (see June 23, 2021 News Release).
The Company has closed the first tranche of the Private Placement with a total of 10,615,000 units being issued at a price of $0.05 per Unit for gross proceeds of $530,750. Each Unit comprises of one common share and one half of one common share purchase warrant exercisable for three years at a price of $0.07 cents.
Summary
The extension of the repayment of the Nebari Loan to December 2022 ($1.95M) and the repayment holiday to after December 2021, appeared to have had a negative impact on valuation. Perhaps the terms are at issue.
Upon repayment of the loan a repayment bonus will be due Nebari equal to 30% of the initially funded amount indexed to the increase in market capitalization from a base of $13,000,000, or the market capitalization in the event of a change of control of the Company within 180 days following repayment. The loan is secured against the Companies' assets.
Vendetta did announce a 10 holes drilling project in July and also entered into an option agreement to acquire 100% of Key Killer Bore exploration concession.
As customary another non-brokered private placement was conducted in the last six month. As usual, the proceeds are oversubscribed and the total amount increased. VTT.V also continues to settled debt by issuance of shares.
In short
VTT.V continues to successfully raise funds above its initial targets which is positive. However, valuation continues to reflect the lack of activity with the Pegmont Lead-Zinc Project.
Both zinc and lead spot prices trajectory are not to be reflected in the share price. In addition, the amount of warrant is growing (i.e. another 15M at $0.07 cents up from 12.5M warrants at $0.09 cents from the previous financing) with very little to show for in terms of activity in the past 18 months.
In addition, results on the 10 holes from the 2021 drilling campaign have yet to be provided. In this context, the option to acquire the Killer Bore project seems overly ambitious given the financial obligations to Nebari.
As such, we are dropping coverage.
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