Volta (VTR.TO) gets $3m+ from IFC/Randgold Warrants
Volta Receives Proceeds of $3,291,928 from the Exercise of Warrants Held By International Finance Corporation (Member of the World Bank Group) and Randgold Resources
TSX: VTR
TORONTO, June 11 /CNW/ - Volta Resources Inc. ("Volta" or the "Company") (TSX: VTR) announces that it has received the proceeds from the acceleration of certain warrants held by International Finance Corporation ("IFC") (a member of the World Bank Group), and Randgold Resources ("Randgold"), as per the terms of a previous financing agreement (See Volta press release dated March 22, 2010). On May 12th, 2010, the 15 day volume weighted average ("VWAP") of Volta's common stock surpassed $1.55 per share, triggering the acceleration of the warrants. IFC and Randgold elected to exercise their 2,702,702 warrants, and 493,345 respectively, at the agreed exercise price of $1.03 per warrant thereby generating gross proceeds of $3,291,928 to the Company.
Kevin Bullock, Volta's CEO, said, "We are happy to see this additional vote of confidence. Volta is well funded to aggressively explore Kiaka where we will be issuing a maiden NI 43-101 resource statement prior to the end of this month."
On March 22, 2010 IFC invested C$4 million to acquire 5,405,405 million Volta units ("Units") at a price of C$0.74 per Unit. Each Unit consisted of one common share of the Company and one half of a share purchase warrant. Each full share purchase warrant was exercisable into one common share of the Company at an exercise price of C$1.03 at any time up to March 23, 2015 (the "warrant exercise period"). The expiry date of the warrants would be accelerated if at any time during the warrant exercise period, the 15-day VWAP of Volta's shares exceeded C$1.55.
Pursuant to an agreement for the purchase and sale of the Kiaka License between Randgold and the Company announced November 13, 2009, Randgold had the right to participate pro-rata in all preemptive and non pre-emptive equity issues made by the Company, provided at the time of such issue Randgold held a minimum of 15 per cent of the total issued and outstanding shares in the capital of the Company (the "Pre-Emptive Right"). Randgold exercised this right on March 29, 2010 and invested C$730,151 to acquire 986,691 Volta units under the same terms as the IFC investment.
Volta is a mineral exploration company primarily focused on becoming a leader in the identification, acquisition and exploration of gold properties in West Africa. The Company is currently fast-tracking its flagship Kiaka Gold Project, located in Burkina Faso, towards a development decision.
Forward Looking Information Caution:
This press release presents "forward-looking statements" within the meaning of Canadian securities legislation that involve inherent risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other minerals and metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Volta to be materially different from those expressed or implied by such forward looking statements, including but not limited to: risks related to international operations, risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management and officers of Volta believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have 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 can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Volta Resources does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
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