TORONTO, March 29 /CNW/ - Volta Resources Inc. ("Volta" or the "Company") (TSX:VTR) announces that the Company has closed a private placement with Randgold Resources Limited ("Randgold").
Pursuant to the agreement for the purchase and sale of the Kiaka Licence between Randgold and the Company announced November 13, 2009, Randgold has the right to participate pro-rata in all pre-emptive and non pre-emptive equity issues made by the Company, provided at the time of such issue Randgold holds a minimum of 15 per cent of the total issued and outstanding shares in the capital of the Company (the "Pre-Emptive Right").
Following the investment in the Company (the "IFC Investment") by the International Finance Corporation (the "IFC) announced March 22, 2010, Randgold has exercised its Pre-Emptive Right and invested C$730,151 to acquire 986,691 Volta units ("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 share purchase warrant. Each full share purchase warrant is exercisable into one common share of the Company at an exercise price of C$1.03 at any time up to March 26, 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 volume weighted average price ("VWAP") of Volta's shares exceeds C$1.55.
The proceeds from the Randgold investments will be used for general corporate and working capital purposes. Randgold owns 19.99% of the issued and outstanding shares of Volta Resources following this 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 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