Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Vendetta Mining advancing Pegmont project in Queensland, at the heart of the world’s most important lead-zinc belt

% of readers think this story is Fact. Add your two cents.

  • Project lies in top-rated mining jurisdiction
  • Resource estimate lifted three times to date with more potential to come
  • Robust PEA in 2019

What Vendetta Mining Corp does:

Vendetta Mining Corp (CVE:VTT) (OTCMKTS:VDTAF) is a Canadian junior explorer, focused mainly on lead and zinc.

The company bought the Pegmont lead, zinc project in 2019, which is strategically located in the Mount Isa – McArthur mineral province, the heart of the world’s most important lead-zinc belt in Queensland, Australia.

Pegmont is a high-grade, largely open pit resource, which has excellent infrastructure. It also boasts an indicated resource estimate of 5.8 million tonnes at 6.5% lead, 2.6% zinc and 11 grams per ton (g/t) silver. The inferred category hosts 8.2 million tonnes at 5.1% lead, 2.8% zinc and 8 g/t silver.

In early 2019, the group released a preliminary economic assessment (PEA), which outlined a 10-year mine plan and robust economics.

It showed a pre-tax internal rate of return (IRR) of 32% (after-tax 24%) and net present value (NPV) of C$201 million (C$128 million after-tax) using long term consensus metal prices of US$0.91 per pound lead, US$1.09 per pound zinc and US$16.50 per ounce of silver and a US$:A$ exchange rate of US$0.75. Pre-production capex was put at C$170 million.

How is it doing:

Vendetta has had a fairly quiet start to 2021, with the only news from the company regarding the completion of a financing and a debt settlement deal.

On February 23, the company announced that it had closed the third and final tranche of a private placement, previously announced in August 2020, with a total of 10,433,333 units being issued at a price of $0.06 each for gross proceeds of $625,999.98. Together with the proceeds from the first and second tranche of the placement, Vendetta said it had issued 25,516,868 units for a total of $1,531,012.

Net proceeds from the financing will be used to advance the development of the company’s 100% owned Pegmont Lead-Zinc project and general working capital, Vendetta added. Back in July 2020, Vendetta had also closed a non-brokered private placement for $811,572 through the issue of a total of 20,288,188 units at $0.04 apiece.

On January 5, Vendetta said it had entered into debt settlement agreements with two arms’ length creditors of the company, under which it will settle aggregate debt of approximately $100,292.16.

Under the terms of the first agreement, the company has agreed to settle debt in the amount of $44,625.00 through the issuance of 686,538 common shares in the capital of the company at a price of $0.065 per common chare. Under the terms of the second debt agreement, it agreed to settle debt in the amount of $55,667.16 through the issuance of 927,786 units of the company at a price of $0.06 per settlement unit, each settlement unit being comprised of one common share and one-half of one transferable common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at an exercise price of $0.09 for a period of three years from the date of issue.

Prior to that, Vendetta’s previous news was in August 2020, when it announced that it had been awarded an A$200,000 grant under the Queensland Government’s Collaborative Exploration Initiative (CEI) to test a conceptual exploration target, the Pegmont Deeps Zinc Target. The project was one of 25 high-quality projects recognised and the firm secured the maximum funding available under the state government’s Collaborative Exploration Initiative (CEI). It will help fund the drilling two 700 metre deep holes, designed to test whether the Pegmont host sequence repeats at depth, it added.

Due to the coronavirus pandemic, the Queensland government had also waived the rent on mining firms’ exploration permits and the EPM26210 permit, where Pegmont is hosted and therefore Vendetta benefitted from this relief.

Before the pandemic hit, in February 2020, the company had reported what it called “highly encouraging” results from material sorting test work at the Pegmont project. In simple terms, the  X-ray transmission (XRT) sorter can easily differentiate between high-grade material and lower density waste, thus potential plant feed can be screened prior to grinding and flotation.

In the boardroom, in July 2020, Vendetta announced the appointment of Alastair Brownlow, a senior consultant with Red Fern which provides the ccmpany with accounting services, to the position of its chief financial officer (CFO), effective June 23, 2020, replacing Jasmine Lau who was also an associate of Red Fern.

Inflection points:

  • Start of drilling at Pegmont Deeps zinc target
  • Metals prices moves
  • Other newsflow

What the boss says:

In the statement of August 2020, Michael Williams, Vendetta CEO commented: “We would like to acknowledge the very meaningful efforts of the Queensland Government including the CEI program, exploration tenement rent and expenditure relief provided during the extraordinary conditions that explorers and developers are currently facing.

The importance of mining and exploration to the Queensland economy is evident in these efforts and we consider ourselves fortunate to be operating in such a supportive jurisdiction.”

Contact the author at [email protected]

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.