Subiaco-based Venture Minerals plans to raise $8 million to advance its Mt Lindsay polymetallic project in Tasmania.
Subiaco-based Venture Minerals plans to raise $8 million to advance its Mt Lindsay polymetallic project in Tasmania.
The announcement is below:
Australian based mineral exploration company Venture Minerals Limited (ASX code: VMS) is pleased to announce it has agreed to raise $8 million to advance the Mt Lindsay Project.
The raising follows Venture's recent announcement which detailed results from the Company's first independent scoping study on the Mt Lindsay Poly-Metallic Deposit (refer to ASX announcement released 30 June 2009). The results confirmed management's belief in the potential of the project, with the study delivering 7 years of mine life and over $700 million in net cash.
Following the successful completion of the $8 million capital raising and the recent receipt of such favourable results from the scoping study, the Company now plans to complete a major drilling campaign over the coming months, focussed on expanding the Mt Lindsay resource base and extending the potential mine life of the project.
Should the Company be successful in defining additional resource tonnes, Venture will look to commence a full feasibility study as soon as possible.
The Placement
The Company has agreed to place a total of 40 million fully paid ordinary shares at 20 cents each to institutional and sophisticated investors in two tranches:
�� Tranche 1 - 15 million shares at 20 cents to raise $3 million will be issued immediately under the Company's 15% capacity, pursuant to ASX Listing Rule 7.1; and
�� Tranche 2 - 25 million shares at 20 cents to raise a further $5 million will be issued subject to shareholder approval at a meeting of members to be held during August 2009. A notice of meeting will be sent to shareholders in due course.
Blackswan Equities Pty Ltd acted as lead manager to the placement with Max Capital Pty Ltd acting as corporate advisors to the Company.
The Company is not aware of any reason why the ASX would not allow trading to recommence immediately.
