THE BOURSE WHISPERER: Venture Minerals (ASX: VMS) informed the market that it has received firm commitments under a Share Placement to sophisticated and professional investors.
Venture Minerals is raising just over $1.5 million through the issue of around 78 million Ordinary Shares at an issue price of two cents per share.
The company explained the raised funds will provide certainty that it will be funded to progress the development of the Riley iron ore project in Tasmania should a positive decision to mine be reached by the Board.
“The Placement and the fully underwritten Entitlement Offer secures key funding capacity for Venture to progress the updated feasibility study on the Riley iron ore project during a time of significant strength for global iron ore markets,” Venture Minerals managing director Andrew Radonjic said in the company’s announcement to the Australian Securities Exchange.
“The recently executed off-take agreement for the Riley project provides strong market validation that the Riley product will be highly sought after.
“The Fully Underwritten Entitlement Offer provides all shareholders the opportunity to participate in the future of the company as we enter an exciting phase of working towards potentially bringing Australia’s next iron ore mine into development.
“With the iron ore price recently breaking through US$100 a tonne, the outlook for the iron ore sector is positive and the Riley project will benefit from a quick-to-market development status by leveraging circa 90 per cent of the required equipment that was previously purchased in 2014 being still on hand.
“The Board looks forward to completing the updated feasibility study on the Riley iron ore project and updating the market on its outcome in the near term.”
Venture has also invited eligible institutional shareholders to participate in a Fully Underwritten Institutional Entitlement Offer.