- Valor Resources (VAL) shareholders have snapped up almost $1.5 million worth of company shares from former major shareholder SSR Mining (SSR)
- As part of a special crossing trade deal, SSR divests its full 8.73 per cent interest in Valor to existing VAL shareholders, including directors George Bauk and Brian McMaster
- The sale comes soon after Valor transferred its Berenguela copper-silver project in southern Peru back to SSR Mining
- In return for transferring the project to SSR, Valor was released of its obligations under an initial purchase deal between the two companies
- This included US$10.8 million (around A$14 million) in outstanding amounts owed to SSR and relevant security interests
- Valor retains its interest in the Picha copper-silver project, also located in southern Peru
- Shares in Valor Resources tacked on 12.5 per cent today to close at 0.9 cents
Valor Resources (VAL) shareholders have snapped up almost $1.5 million worth of company shares from former major shareholder SSR Mining (SSR).
The deal was done as a special crossing trade as part of SSR’s plan to divest its entire 8.73 per cent interest in Valor.
Valor directors George Bauk and Brian McMaster bolstered their own position in VAL by buying 15 million shares and 20 million shares, respectively, with the rest of SSR’s shares on offer sold to existing Valor shareholders.
All up, SSR sold 247.3 million shares at 0.6 cents a pop.
The sale comes just months after Valor transferred its Berenguela copper-silver project in southern Peru back to SSR Mining.
In return for transferring the project to SSR, Valor was released of its obligations under an initial purchase deal between the two companies — among which included US$10.8 million (around A$14 million) in outstanding amounts owed to SSR and relevant security interests.
As such, the transfer of the Benerguela project to SSR was effectively a $14 million windfall for Valor.
Of course, once the Berenguela project was back in SSR’s control, the Canada-based miner had no further project interests with Valor — hence the call to completely divest its major shareholding in the company.
As such, Valor’s broker, CPS Capital, arranged the special crossing for SSR to sell its full shareholding to existing Valor shareholers.
According to Valor, the deal highlighted the “strong support and sentiment” for Valor’s current projects from existing shareholders.
Valor retains its interest in the Picha copper-silver project, also located in southern Peru.
Shares in Valor Resources tacked on 12.5 per cent today to close at 0.9 cents. The company has a $23 million market cap.