Venture Minerals Limited (ASX:VMS, OTC:VTMLF) has high hopes to add A$5.5 million to its Mount Lindsay exploration war chest in a capital raising bid announced today.
The company will use an institutional placement targeting A$4.25 million at A$0.036 per share from Australian and international institutions, and a share purchase plan aimed at eligible existing shareholders to raise an additional A$1.25 million at the same share price.
The issue price for both the placement and the share purchase plan represents a 14.3% discount on the last closing price and a 19% discount to the volume-weighted average price of shares traded on the ASX in the 10 trading days before the announcement.
Ramping up exploration
The company says it has firm commitments from sophisticated, professional and institutional investors to raise the funds, which it will use to advance its operations at the Mount Lindsay Tin-Tungsten Project, including assembling the team to drive it.
Tin is a key component in electric vehicles, and Mount Lindsay is one of the largest undeveloped tin deposits in the world – it also hosts a substantial tungsten resource.
Venture will channel the substantial funds into ramping up its plans for exploration drilling at Mount Lindsay. Priorities include advancing its feasibility study and purchasing additional drill rigs. The proceeds will also serve as general working capital.
"The time for tin is now"
“The time for tin is now and this placement allows Venture to accelerate the updated underground feasibility study at Mount Lindsay as part of our strategy of becoming an ESG-compliant tin producer in the near future, while continuing the search for the next discovery in Australia’s premier tin district,” Venture managing director Andrew Radonjic said.
“Tungsten is a critical mineral and governments throughout the world (including in Australia) are looking to support the development of new mines such as Mount Lindsay.”