Venturex Resources prepares to spend Environment Bond windfall

THE BOURSE WHISPERER: Venturex Resources (ASX: VXR) has voluntarily ‘opted in’ to the Western Australia State Government’s new Mining Rehabilitation Fund.

The move allows Venturex to retire Environmental Performance Bonds covering the company’s tenements at Whim Creek in the Pilbara region.

Venturex said the retirement of the Envirionmental Bond would result in the release of a $1.69 million bank-held security deposit.

It will also increase the company’s net cash reserves to approximately $4.3 million.

The funds have been earmarked for advancing the company’s active exploration program in the Pilbara at the Sulphur Springs and Whim Creek project areas.

Preparations for a three-hole diamond drilling program at the new Midway prospect, located between the Sulphur Springs and Kangaroo Caves resource areas, is underway.

The news continues to be good for Venturex as this drilling is to be co-funded under the WA Government Exploration Incentive Scheme program, and is anticipated to begin in late September or early October 2013.

“Discussions are continuing with respect to the potential disposal of selected non-core assets to further strengthen the company’s financial position in this challenging market,” Venturex Resources said in its ASX announcement.