21/01/2011 - 13:19

Venturex to acquire Panorama zinc mine

21/01/2011 - 13:19

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Venturex Resources says it will raise $36.8 million to acquire the Panorama copper and zinc mine in the Pilbara from CBH Resources.

Venturex to acquire Panorama zinc mine

Venturex Resources says it will raise $36.8 million to acquire the Panorama Copper and Zinc mine in the Pilbara from CBH Resources.

Venturex announced today it will acquire the Panorama project for $26.2 million cash and the granting of zinc off-take rights to Toho Zinc.

The $36.8 million raising will comprise a share placement to institutional and sophisticated investors and a 2:5 fully underwritten rights issue.

Venturex said extra proceeds from the raising would provide working capital to fast track feasibility studies for the project.

Venturex managing director, Tim Sugden, said that the acquisition of Panorama was a logical step in Venturex's strategy of consolidating deposits in the Pilbara and developing a centralised processing hub at its Whim Creek operations.

"The Panorama Project adds significant scale to our Pilbara development plans and, by capitalising on our existing infrastructure, the economics of the combined projects are compelling," Mr Sugden said.

"This acquisition will elevate Venturex into the ranks of Australian mid-tier base metals developers and position our Shareholders to benefit from the positive market outlook for copper and zinc."

Shares in Venturex jumped 1.5 cents, or 12 per cent, to 14 cents following the announcement.

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