Exciting news for Vancouver-based Delrey Metals (CSE:DLRY) (OTCPK:DLRYF), as the mineral exploration company just announced the raising of significant proceeds through a non-brokered private placement. The transaction will see Delrey issue 11,000,000 flow-through units at a price of $0.1001 each, as well as 5,000,000 non-flow-through units at a price of $0.08 each. Together, the gross proceeds of the private placement will total up to $1,500,000.
All proceeds from the flow-through units will be used to pay for exploration on Delrey’s several Canadian properties, while some proceeds from the non-flow-through units will also go towards general working capital purposes.
Delrey’s Cross-Canada Mining Projects
As a company dedicated to the acquisition, exploration, and development of mineral resource properties—specifically in the strategic energy minerals space—Delrey Metals currently has six holdings split between Canada’s west and east coasts.
In the west, the company owns the Blackie, Star, Porcher, and Peneece properties, all of which are Fe-Ti-V properties located along tidewater in western British Columbia.
Not far away is the Sunset claim in between Whistler and Pemberton. This area is a strongly mineralized belt, with known deposits of gold, iron, copper, and more. There, Delrey is currently seeking a volcanogenic massive sulfide deposit or vein and replacement type gold-silver deposit. It plans to examine an area of geochemical and mineral anomalies near the claim for more indications of a deposit in the future.
In the east, Delrey has an 80 percent interest in the Four Corners Project. Located in southwestern Newfoundland and Labrador, Four Corners is host to vanadium enriched titaniferous magnetite mineralization, which shows a strong indication for significant and consistent vanadium accumulations.
The project comprises 7,655 hectares and has plenty of infrastructure for mining projects, such as the nearby Trans-Canada highway and a 33MW power-line intersecting property.
Recently, Delrey announced that it will advance the development of the Four Corners project by drilling a total of 500 meters from 20 drill pads. This will be done at the project’s flagship target, the Keating Hill East Zone, which is historically estimated to host large quantities of vanadium.
Vanadium Deposits Offer Access to a Growing Market
Over the last few years, the price of vanadium has risen in coordination with a greater worldwide demand for the metal. This demand is expected to create a worldwide vanadium market estimated to be worth $56 billion by 2026, representing a CAGR of 6.6%.
Vanadium is a highly durable, malleable, and ductile metal that can be found in cars, jet engines, pipelines, redox flow batteries, and as an important alloy in steel production. While western countries tend to use more vanadium in their steal, China is by far the largest consumer of the element.
The price of vanadium soared dramatically last year when China announced it would begin incorporating more of the element in its steel rebar.
In addition to vanadium, iron ore is an increasingly valuable commodity as of late, rising to a new five-year high of $100 USD per tonne. Delrey’s Four Corners project, as well as its several BC holdings, contain—or indicate that they are likely to contain—significant iron ore deposits.
What the company’s forthcoming explorations will yield remains to be seen, but it will be exciting to watch its portfolio of mineral holdings and its access to in-demand elements increase in both the near and long-term future. Keep watching this space for news and updates from this leading, BC-based mineral extraction company.
Featured image: Delrey