PERTH (miningweekly.com) – ASX-listed explorer Venturex Resources will raise A$3.75-million to advance its Pilbara zinc-copper project, in Western Australia.
The company on Monday announced that it will undertake a two-for-seven nonrenounceable rights issue, priced at 5c a share. The company’s major shareholder Northern Star Resources will take up its full entitlement, and will sub-underwrite up to A$2-million of the rights issue.
Venturex chairperson Tony Kiernan said on Monday that the rights issue provides the opportunity for shareholders to increase their holding in the company at an attractive price, and at a pivotal stage in the company’s development.
“The funds raised through this capital raising will enable Venturex to complete several critical tasks and progress towards a final decision to mine at Sulphur Springs,” he said.
“We intend to build on the framework outlined by the recent Sulphur Springs value engineering study by undertaking in-fill drilling of a portion of the near-surface high-grade supergene copper resource, carrying out metallurgical testwork and continuing the permitting process.”
Kiernan noted that these work programmes will further de-risk the project and advance it towards shovel-ready status.
Funds from the raising will also be used to evaluate exploration targets in the immediate Sulphur Springs project area.