Venturex unveils A$58m capital plan
PERTH (miningweekly.com) – ASX-listed Venturex has unveiled a A$58-million recapitalization plan, which would see mining executive Bill Beament take a major share in the company.
Venturex on Wednesday said that it would raise an initial A$14-million through a share placement, priced at 8c each, with Beament to contribute A$8.9-million to this initial placement.
More than 175-million shares would be on issue, subject to shareholder approval.
A one-for-seven entitlement offer, which will also be priced at 8c each, is expected to raise a further A$4.4-million, with more than 55.3-million new shares to be issued under the entitlement offer.
Subscribers of both the entitlement offer and the share placement would receive one free attaching option for every two shares subscribed for, with an exercise price of 13.5c each and an expiry of two years. If the options are exercised, Venturex could raise a further A$15.5-million.
Following the completion of the placement and the entitlement offer, Beament will hold a 26.2% interest in Venturex, and will be appointed as an executive director from July 1.
Until that time, he has entered into a part-time consulting agreement with Venturex, starting immediately, and will be granted 140-million incentive options, exercisable at 15c each, subject to shareholder approval.
The incentive options bring Venturex’s total capital raised to some A$58-million, of which Beament is expected to contribute some A$37.3-million.
The company on Wednesday told shareholders that it would implement a board restructure, which would see Mick McMullen be appointed as executive director, with immediate effect.
“This growth strategy is a game-changer for Venturex. The combination of funding provided to the company and the exceptional talents of those joining the board will position Venturex to become a near-term producer,” said executive director Anthony Reilly.
“Existing Venturex shareholders will also benefit immediately from the strategy and will be offered the chance to acquire further shares and options in Venturex on the same terms as the placement investors.”
Reilly said that the ultimate aim of the strategy was to build a high-growth supplier of new generation energy and technology materials based in the tier one locations building on the Sulphur Springs copper/zinc project as a foundation asset.
A 2018 definitive feasibility study estimated that the Sulphur Springs project would require a capital investment of A$169-million to develop a 1.25-million-tonne-a-year operation, producing some 65 000 t/y of 25% copper concentrate, and 75 000 t/y of 50% zinc concentrate over a mine life of more than ten years.
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