PERTH (miningweekly.com) – Junior Venture Minerals will raise A$4-million through a share placement to fund the start of mining activities at its Riley iron-ore project, in Tasmania.
Venture on Monday said it had received firm commitments from sophisticated, professional and institutional investors for the placement of more than 129-million shares, at a price of 3.1c each.
The company will also be launching a share purchase plan (SPP), at the same price, to raise a further A$1.5-million, offering 48.38-million shares to existing shareholders.
The issue price of the share placement and SPP represents a 10.6% discount to Venture’s ten-day volume weighted average share price prior to the placement being announced.
Following the settlement of the share placement, the Venture board will make a final investment decision on the Riley iron-ore mine. With on-site infrastructure already complete, ore mining and dry screening activities could start within one week of a positive decision and the receipt of placement funds.
A previously completed prefeasibility study estimated that the Riley project would require a capital spend of A$3.6-million to return to production, producing around one-million tonnes of 57% iron over a two-year mine life.
Funds from the raising will also go towards exploration at the Kulin gold project, in Western Australia, with drilling expected to start next month.