Vendetta Mining Corp. is a Canadian junior exploration company which is currently focused on advancing its 100% owned Pegmont Lead Zinc project in Australia. Previous coverage was initiated on December 2019, and July 2020.
News Releases
Aug. 12 - Pegmont Project Awarded Grant from Queensland Government to Test Zinc Target and Private Placement.
Awarded an A$200,000 grant under the Queensland Government's Collaborative Exploration Initiative ("CEI") to test a conceptual exploration target, the Pegmont Deeps Zinc Target, as described below. The Pegmont Deeps Zinc Target was one of 25 high-quality projects recognized, with Vendetta securing the maximum funding available.
Private Placement: A non-brokered private placement up to 6,250,000 units at $0.08 (Warrant 0.11 cents) for $0.5M.
Nov. 5 - Closes First Tranche of Private Placement: Amended the price of its previously announced private placement to $0.06 per Unit. Each Unit will be comprised of one common share and one-half of one common share purchase warrant, execisable for three years, at a price of $0.09. The Company has also increased the amount of Units available to be issued in the Private Placement to 13,750,000 for gross proceeds of $825,000.
The Company has subsequently closed the first tranche of the Private Placement with a total of 9,583,328 units being issued for gross proceeds of $575,000. Net proceeds from the financing will be used to advance the development of the Companies 100% owned Pegmont Lead-Zinc project and general working capital.
Nov. 16 - Provides Update on Private Placement: At the request of the TSX Venture Exchange, the Company closed the first tranche of the Private Placement with a total of 9,583,328 Units being issued for gross proceeds of $575,000 today, not on November 5, as previously disclosed.
The Company anticipates closing the balance of the Private Placement, for up to 4,166,672 Units and gross proceeds of up to $250,000, in the next few weeks, subject to TSX Venture Exchange approval.
Nov. 27 - Increases Private Placement: Increasing its previously announced non-brokered private placement (see News Release dated November 5, 2020) from 13,750,000 units to 17,083,333 units a price of $0.06 (Warrant 0.09 cents).
Dec. 10 - Closes Second Tranche of its Non-Brokered Private Placement: A total of 5,500,207 units being issued at a price of $0.06 per Unit for gross proceeds of $330,012. Together with the proceeds from the first tranche, the Company has issued 15,083,535 units for a total of $905,012.
Jan. 5 - Announces Shares for Debt Transaction: Entered into debt settlement agreements with two arms' length creditors of the Company, pursuant to which it will settle aggregate debt of approximately $100,292.16.
Under the terms of the first debt settlement agreement, the Company has agreed to settle debt in the amount of $44,625.00 through the issuance of 686,538 common shares at $0.065 cents.
Under the terms of the second debt settlement agreement, the Company has agreed to settle debt in the amount of $55,667.16 through the issuance of 927,786 units of the Company at $0.06 cents.
Each Settlement Unit will be comprised of one Common Share and one-half of one transferable Common Share purchase warrant, with each whole warrant entitling the holder to purchase one additional Common Share at an exercise price of $0.09 for a period of three years from the date of issue.
Jan. 13 - Announces Update on Third Tranche of Private Placement: Sought a 30 day extension from the TSX Venture Exchange to close the third tranche of its previously announced private placement of up to 17,083,333 units.
Through the first and second tranche of the private placement the Company has already issued 15,083,535 units.
Feb. 23 -Vendetta Closes Third and Final Tranche of its Non-Brokered Private Placement: Closed the third and final tranche of its previously announced Private Placement with a total of 10,433,333 units being issued at a price of $0.06 per Unit for gross proceeds of $625,999.98. Together with the proceeds from the first and second tranche, the Company has issued 25,516,868 units for a total of $1,531,012. Net proceeds from the financing will be used to advance the development of the Companies 100% owned Pegmont Lead-Zinc project and general working capital.
Summary
Another non-brokered private placement was conducted in the last eight month. Typical to VTT.V, the financing price was lowered but the proceeds were much higher and ended up being oversubscribed.
Specifically, the original offer for $0.5M at $0.08 cents (Warrants $0.11 cents) was lowered to $0.06 cents (Warrants $0.09 cents). In contrast, the initial gross proceed of $0.5M was increased to $0.82M (Nov. 5) and to $1.02M (Nov. 27, 2020). Eventually, VTT.V closed an oversubscribed offer of $1.53M (i.e. >50% over the latest upgraded offer).
VTT.V also successfully managed to settled debt by issuance of shares for $0.1M at $0.065 and $0.06 cents.
Regarding the grant from the Queensland Government's Collaborative Exploration Initiative ("CEI"), VTT.V has yet to issue a release on its activities. However, in the last MD&A (November 30, 2020), the following is indicated:
2020 Exploration Program
In June 2020 the Company submitted an application to the Queensland Government’s Collaborative Exploration Initiative (“CEI”) to test a conceptual exploration target, the Pegmont Deeps Zinc Target, and was successful in obtaining a A$200,000 grant towards the cost of drilling this target.
The Company completed the two CEI funded 700 m deep drill holes in November 2020. The holes did not intersect the postulated banded iron formation at depth, they did however intersect other banded iron stones below the main mineralized horizon. The interpretation of these two holes and assay results are pending.
In short
VTT.V continues to successfully raise funds above its initial targets. This is clearly a net positive. However, at this stage it is unclear what plans the company has to further "advance the development of the Pegmont Lead-Zinc project".
Unfortunately, the rise in zinc and lead spot prices is not reflected in the share price. In addition, the amount of warrant continues to grow (i.e. the recent placement alone added 12.5M warrants at $0.09 cents).
In the absence of significant developments, there is little articulated vision from management to the market as to what the next steps are for VTT.V. Hopefully, the incoming drill results from the CEI grant will spur additional clarification.
At this time, valuation continues to be attractive but the approach to resource expansion comes across as tentative.
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