Gold major takes bigger stake in copper zinc explorer Venturex
Copper-zinc explorer Venturex raised a handy $2.3 million in a share placement to progress its flagship Sulphur Springs project in Western Australia.
Major backer Northern Star Resources (ASX:NST) also converted $1 million of its loan to Venturex, boosting its stake in the company to 19.79 per cent.
Northern Star is a 900,000 ounce per year Australian gold producer with a market cap of about $5.2 billion.
Venturex (ASX:VXR) told investors the $2.3 million would help fund early works, complete detailed designs, and finalise project financing for Sulphur Springs.
Venturex Managing Director AJ Saverimutto said the successful capital raising in a challenging market environment reflected the project’s quality.
The share placement was completed at an issue price of 18c per share, a premium to the current share price of 17.5c.
“This capital raising puts Venturex in a very strong position moving into the New Year, with a full book of upcoming news-flow including final project approvals, project financing, development approval and the restart of exploration for 2019,” he said.
“Venturex is now poised to realise its objective of becoming a significant new mid-tier Australian base metals producer, and we are very much looking forward to what 2019 will bring for the company.”
In a November update, Venturex told investors it was talking with banks and other financiers about debt financing the $146 million development.
Venturex was also “well progressed” in discussions with potential off-take partners.