TORONTO, March 22 /CNW/ - Volta Resources Inc. ("Volta" or the "Company") (TSX:VTR) announces that, further to its press release issued January 12, 2010 in which the Company announced a proposed investment in Volta by the International Finance Corporation (the "IFC"), the transaction has closed effective March 22, 2010. The IFC invested C$4 million to acquire 5,405,404 Volta units (the "Units") at a price of C$0.74 per Unit. Each Unit consists of one common share of the Company and one half of a common share purchase warrant (each, a "Warrant"). Each Warrant is 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 is subject to acceleration if at any time during the warrant exercise period, the 15-day volume weighted average price ("VWAP") of Volta's common shares exceeds C$1.55.
The IFC has the right to make further equity investments in Volta of up to C$4 million in minimum individual amounts of C$1 million for a period of twelve calendar months following March 22, 2010 at a price equal to the greater of the VWAP for the 15 trading days preceding the delivery of the option notice less a 15% discount, and the VWAP for the 5 trading days preceding the delivery of the option notice less a 20% discount, if the share price is less than or equal to C$2.00 or, at the price equal to the greater of the VWAP for 15 trading days preceding the delivery of the option notice less a 15% discount, and the VWAP for the 5 trading days preceding the delivery of the option notice less a 15% discount, if the share price is greater than C$2.00. The optional subscription is subject to the receipt of all necessary regulatory approvals.
The proceeds from the IFC investments will be used to finance further exploration activities at Volta's flagship Kiaka Gold Project in Burkina Faso, West Africa and for working capital.
The World Bank and the IFC work together to help countries and companies ensure that the benefits of resource development are sustainable. The IFC supports private sector investment in extractive industries by working with investors and communities to enable these communities to enjoy concrete benefits such as jobs, improved infrastructure, and economic opportunities. The IFC provides companies with a range of financial products during the development cycles of their projects and has invested over US$73 billion in emerging markets since 1956. It has provided financing to various mining projects in West Africa, including Newmont's Ahafo gold mine in Ghana, AngloGold Ashanti's Obuasi and Iduapriem mines in Ghana, and Sadiola in Mali. For more information on the IFC visit www.ifc.org.
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 committed to West African exploration and is Canadian-based with its head office in Toronto, Ontario and operations offices in Accra, Ghana and Ouagadougou, Burkina Faso.
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.
SOURCE Volta Resources Inc.
For further information: For further information: please refer to our website www.Voltaresources.com or contact: Kevin Bullock, P.Eng., President & CEO, Tel: (647) 388-1842, Fax: (416) 867-2298, Email: email@example.com