Vendetta Mining Corp (CVE:VTT) (OTCMKTS:VDTAF) said Wednesday that it had closed the first tranche of a previously announced fundraising and has put in a request to upsize the financing to the Toronto Venture Exchange.
The request is to increase the private placement, announced in February this year, of up to 11 million units to 20 million units to raise gross proceeds of C$800,000.
The mining firm has closed the first tranche with over 13.9 million units issued at C$0.04 a throw for gross proceeds of C$558,482.
The group said net proceeds will be used to advance the development of the group's wholly-owned owned Pegmont lead-zinc project in Queensland, Australia and for general working capital.
Each unit in the placing consists of one share and one share purchase warrant, which is exercisable for three years at C$0.06 each.
Vendetta's Pegmont property is situated in the Mount Isa-McArthur area of Australia, which hosts one of the world's richest endowments of lead-zinc-silver mineralization, including several significant lead-zinc-silver mines.
A preliminary economic assessment (PEA) on Pegmont was released by the firm in January last year.
The study outlined a 10-year mine plan that generates a strong economic return with a (base case) pre-tax internal rate of return (IRR) of 32% (after-tax 24%) and net present value of $201 million ($128 million after-tax), using long term consensus metal prices of $0.91 per pound lead, $1.09 per pound zinc and $16.50 per ounce of silver and a US$:A$ exchange rate of $0.75.
In Wednesday's statement, the firm also announced that certain directors, officers and consultants have agreed to cancel 9,925,000 incentive stock options, at strike prices of C$0.15 and C$0.30, which were previously issued.
The company will have no stock options outstanding under its rolling 10% stock option plan and it does not intend to or re-issue any options at these current levels, it said.
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