THE BOURSE WHISPERER: VRX Silica (ASX: VRX) announced it has received commitments for a capital raising via a share placement to professional and sophisticated investors to raise approximately $2.26 million before costs.
VRX Silica said the placement received strong support from a range of sophisticated and institutional investors together with existing shareholders and will result in the issue of approximately 37.67 million new fully paid ordinary shares at an issue price of six cents per share.
VRX directors committed to subscribe for an aggregate of shares under the placement, representing approximately $260,000, subject to shareholder approval.
“We are delighted with the strong support received for the Placement from a wide range of investors,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.
“The Placement positions VRX to continue to rapidly progress both the Arrowsmith and Muchea silica sand projects.
“Near term activity includes an updated JORC Resource following the completion of our recent drilling program and the release of a bankable feasibility study, currently targeted to be completed in the early part of the September quarter 2019.”
VRX indicated the funds raised will be allocated to completion of feasibility studies and progression of environmental approvals and mining lease applications at the company’s Arrowsmith and Muchea projects
A portion of the net Placement proceeds will be directed towards exploration activities at the company’s Boyatup silica sand project and Warrawanda HPQ project and for general working capital.