Shareholders in ASX-listed VentureX Resources have given their “overwhelming” backing for a Bill Beament-led strategic funding package, designed to reposition the company to become a supplier of new-generation energy and technology metals.
The approval at an extraordinary general meeting (EGM) this week marks the beginning of a new era for VentureX, under a new management team, led by Beament.
Beament, who recently stepped down as Northern Star boss, would join as an executive director on July 1, nonexecutive chairperson Michael Blakisto, who was elected at the EGM, said on Thursday.
He noted that former Stillwater Mining and Detour Gold CEO Mick McMullen had already joined the board as an executive director.
The recapitalisation plan, announced in February and approved at the EGM, would allow the company to advance its flagship Sulphur Springs copper/zinc project in the Pilbara towards a final investment decision.
The transaction would introduce funding of A$19-million at 8c a share by way of a A$14-million placement to sophisticated investors, of which Beament would contribute A$8.9-million and a fully underwritten one-for-seven entitlement offer to existing shareholders.
An option structure would source additional funding of A$39.6-million, increasing the total value of the strategic funding package to A$59-million.
“Underpinned by a high-quality resource and reserve supporting an initial ten-year mine life with exceptional exploration upside, Sulphur Springs is one of the few development-ready base metal assets worldwide. Its tier-one location and completed feasibility study with compelling economics mean that VentureX is perfectly poised to secure financing and advance towards development of the Sulphur Springs project, taking advantage of the positive outlook for clean-energy metals over the coming decade,” said Blakisto.
A definitive feasibility study has endorsed a 1.25-million-tonne-a-year development. The project envisages an operation producing about 65 000 t/y of 25% copper concentrate and 75 000 t/y of 50% zinc concentrate.
Life-of-mine (LoM) payable metal is estimated at 146 000 t of copper and 348 000 t of zinc. The project has a 10.3-year LoM.
Sulphur Springs has a pretax net present value, at an 8% discount rate, of A$472-million and an internal rate of return of 51%.
The project comprises Joint Ore Reserves Committee-compliant reserves of 8.5-million tonnes grading 1.4% copper, 3.1% zinc and 14.3 g/t silver.