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Veta loses interest in JOY

Junior Veta Resources has blamed “unprecedented circumstances relating to the access of capital as a result of the COVID-19 pandemic” for dropping its interest in the JOY gold properties in Chile.
Veta loses interest in JOY Veta loses interest in JOY Veta loses interest in JOY Veta loses interest in JOY Veta loses interest in JOY

Image: Unsplash/Ethan McArthur

Staff reporter

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The company had announced in December it was planning to raise a minimum C$100,000 as part of a financing transaction with Plethora Private Equity, with the option to acquire two other exploration projects to be spun into another company.

At the time, Veta said it was retaining its interest in JOY which was about 125km south of Yamana's Mineral Florida mine.

Yesterday, with the financing unsuccessful, Veta said it also intended to participate in the blanket relief programme announced in March by the Canadian Securities Administrators which extended deadlines to file financial documentation.

Veta changed name from Southeast Asia Mining Corp in 2018 and had a working capital deficiency of about $524,000 at September 30.

Other companies have had mixed success with financings in recent weeks.

SilverCrest Metals this week unveiled a new attempt to raise $75 million, after last month's effort was scuppered by the backing syndicate which cited the adverse effect of the global pandemic on financial markets. 

However producer New Gold arranged a strategic partnership with Ontario Teachers' Pension Plan over the New Afton mine for US$300 million in cash two weeks ago.

The TSX Venture Exchange has meanwhile cut its financing price limit to provide relief to companies seeking financing in the turbulent COVID-19 market.

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