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Strategic Investor Michael Gentile and Other Cornerstone Investors Maintain Their Holdings
Valkea Resources Corp. (TSXV: OZ,OTC:OZBKF) (OTCQB: OZBKF) (the "Company" or "Valkea") is pleased to announce that, further to it's news releases dated December 24, 2025, it has closed the non-brokered private placement (the "Financing") for gross proceeds of C$2.5 million.
In relation to the financing, a total of 10,000,000 units of the Company (the "Units") were issued at a price of $0.25 per Unit. Each Unit is comprised of one common share of the Company (a "Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant") of the Company. Each Warrant will entitle the holder to purchase one common share of the Company at an exercise price of C$0.35 for a period of 36 months following the closing date of the Financing.
"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% positions," commented Chris Donaldson, CEO 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."
In connection with the Financing, the Company paid finders fees of $49,500 cash and issued 198,000 finders warrants for the Company (the "Finders Warrants") to eligible arm's length finders. Each non-transferrable Finders Warrant entitles the finder to purchase one common share of the Company (a "Finder Warrant Share") at a price of $0.35 per Finder Warrant Share until January 14, 2029.
The securities issued in connection with the Financing are subject to a four-month and one-day hold period under applicable Canadian securities laws. Closing of the Financing is subject to final approval of the TSX Venture Exchange.
Directors and officers of the Company subscribed for an aggregate of 220,500 Units for gross proceeds of $55,000 under the Financing. Participation by insiders of the Company in the Financing constitutes a related-party transaction as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 as the common shares of the Company are listed on the TSX Venture Exchange. The issuance of securities is also exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(b) of MI 61-101 as the fair market value was less than $2,500,000.
Proceeds from the Financing will be used for exploration of the Company's the flagship Paana project and working capital purposes.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
OPTION GRANT
The Company also announces that it has granted an aggregate of 1,000,000 stock options to certain consultants of the Company. Each option is exercisable to acquire one common share of the Company at a price of $0.40 per share for a period of 5 years, in accordance with the terms of the Company's stock option plan. The options are subject to applicable regulatory approvals and any necessary hold periods as required by the TSX Venture Exchange.
About Valkea Resources
Valkea Resources is at the forefront of gold exploration in Finland's highly prospective Central Lapland Greenstone Belt (CLGB). With an extensive portfolio of high-potential projects, including the flagship Paana project, Valkea Resources is committed to discovering and advancing significant gold deposits in one of the world's emerging gold districts.
Contact Information
For more information please contact:
Chris Donaldson, Chief Executive Officer and Director
Tel: (604) 813-3931 | Email: info@valkea.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking statements or forward-looking information relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements in this news release include but are not limited to statements regarding the use of proceeds.
Forward-looking statements are based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: the Company not receiving the necessary regulatory or exchange approvals in respect of the Financing; recent market volatility; the inability of the Company to use the proceeds of the Financing as currently anticipated; and the state of the financial markets for the Company's securities. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include but are not limited to: the Company's early stage of development; the fluctuation of the price of metals; the availability of additional funding as and when required; the speculative nature of mineral exploration and development; the timing and ability to maintain and, where necessary, obtain necessary permits and licenses; the uncertainty in geologic, hydrological, metallurgical and geotechnical studies and opinions; infrastructure risks, including access to water and power; environmental risks and hazards; risks associated with negative operating cash flow; and risks associated with dilution. For a further discussion of risks relevant to the Company, see the Company's other public disclosure documents.
Although management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated, or intended. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except as, and to the extent required by, applicable securities laws.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280420
