Vendetta MiningCorp. said May 5 that it raised C$2.5 million in a , through which SolitarioExploration & Royalty Corp. obtained an 11.21% stake in the company on a fullydiluted basis.
The company said it increased the private placement from C$2million previously tofacilitate Solitario's investment.
The company issued 50.0 million units at 5 Canadian cents apiece,each unit comprising 1 share and a purchase warrant, exercisable at 10 cents pershare for two years.
If Solitario exercises all the warrants, it will have an 18.13%interest in Vendetta.
Resource Capital Fund VI LP will continue to hold a 39.80% stakein the company on a fully diluted basis.
The proceeds will be used to develop the Pegmont lead-zinc sulfide project in Queensland,Australia, where drilling is scheduled to start in the second quarter.
The 2016 program will include metallurgical and resource developmentdrilling at the newly discovered near surface Burke Hinge zone and within Zone 5,as well as for metallurgical test work, property payments and general working capital,the company said.