Valhalla Metals completes $15 million funding and Smucker Project acquisition

Valhalla Metals Inc. (TSXV: VMXX) (OTCQB: VMXXF) completed its acquisition of the Smucker Project from Teck American Incorporated and closed a $15 million private placement, according to a company statement.

The acquisition involved issuing 44,813,642 subordinate voting shares to Teck Resources Limited and granting the company a 2% net smelter returns royalty on portions of the Smucker Project. Teck also received priority purchase rights on concentrate from the Sun and Smucker properties and the right to appoint a director to Valhalla's board.

The transaction made Teck a control person of Valhalla, requiring shareholder approval under TSX Venture Exchange policies. Following the deal, Teck holds 47,505,950 shares, representing 31.4% of outstanding shares.

The Smucker Project, discovered in 1975, contains copper, gold, silver, zinc and lead deposits in Alaska's Ambler Mining District. A historical 1981 estimate reported 11.8 million tons at various grades, though this estimate does not comply with current NI 43-101 standards and should not be relied upon.

Valhalla raised approximately $15 million through the sale of 23,076,923 subscription receipts at $0.65 each. Investors included Teck for $1.75 million and a Marubeni Corporation affiliate for $1.7 million. The subscription receipts automatically converted to common shares upon closing the acquisition.

The company plans to use proceeds for exploration at the Sun property, including drilling programs, and for mapping and survey work at the Smucker Project. Valhalla completed a 24-person camp construction in 2023 and drilled four holes totaling 1,104 meters with results showing copper equivalent grades ranging from 1.91% to 6.84%.

The company also converted all multiple voting shares to subordinate voting shares on a 100-to-1 basis as part of the transaction structure.

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