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- Venture Minerals (VMS) has received firm commitments to raise $10 million to fully fund its Riley Iron Ore Mine wet screening plant in Tasmania
- The explorer says the funds allow it to progress towards the final stages of constructing and commissioning the plant
- Over 181.8 million shares were offered to investors at 5.5 cents each — a 10.7 per cent discount to the 15-day volume-weighted average price
- Significantly, the money will allow VMS to fund the project through capital instead of debt, which was its original plan
- VMS shares are down 7.58 per cent and trading at 6.1 cents each
Venture Minerals (VMS) has received firm commitments to raise $10 million to fully fund its Riley Iron Ore Mine wet screening plant in Tasmania.
The placement was offered to sophisticated, professional, and institutional investors through the issue of 181,818,182 shares at 5.5 cents each.
The issue price represents a 10.7 per cent discount to the 15-day volume-weighted average price.
VMS says the placement has “fully” funded the Riley development. Specifically, it allows the company to move towards the final stages of the wet screening plant’s construction and commissioning as it gears up for the first iron ore shipment in the second quarter of this year.
Stage one of the wet screening plant construction has now been completed according to VMS, entailing ROM or, run of mine, concrete foundations and site works.
In discussing the origins of the placement, Venture says an “opportunity had presented itself” following a culmination of its steadily rising share price, previous exploration successes and increasing iron ore prices.
It meant Venture could scrap its plans to fund the wet screening plant through debt, a move the VMS board believes significantly “de-risks the project” as the company transitions from an explorer to a producer.
Canaccord Genuity is acting as lead on the placement with settlement expected to occur on January 28.
Venture says the funds will also be put towards its Golden Grove North Zinc-Copper-Gold Project and Kulin Project, where a 3000 metre drilling program is underway.
VMS shares are down 7.58 per cent and trading at 6.1 cents each at 1:53 pm AEDT.
