Venture to raise $5.7m for iron ore restart

Venture Minerals will undertake a share placement and rights issue, with the funds set to fast-track the restart of its Riley iron ore mine in Tasmania.

The West Perth-based junior will look to raise $1.56 million via a share placement at 2 cents per share to sophisticated and professional investors.

It also is conducting a 2-for-5 rights issue to raise up to $4.16 million, also at 2 cents per share.

Venture said the mining study will be updated over the coming weeks before a decision to recommence mining.

Its first revenue goal is to occur as early as the fourth quarter of this calendar year.

The mine has reserves of 1.8 million tonnes at a grade of 57 per cent iron ore.

Having achieved all necessary approvals for the development of the project as well as secured debt and equity requirements, the company said it was well placed to take advantage of higher iron ore prices throughout 2013.

But it suffered delays due to on-going appeals to the project’s approvals, which saw the production timeline delayed until mid-2014, which coincided with a marked deterioration in the economic environment driven principally by a substantial decline in the iron ore price.

It suspended operations in August 2014.