Venture Minerals Ltd (ASX:VMS, OTC:VTMLF) has raised A$6 million from a heavily oversubscribed share purchase plan.
The multi-element explorer was originally out to raise A$1.25 million under the offer, but instead received applications for A$8.7 million worth of VMS shares.
With the capital raise representing oversubscriptions of 700%, Venture opted to upgrade the plan to raise A$6 million, meaning it will accept A$4.75 million in oversubscriptions.
The A$6 million in share purchase plan capital adds to the A$4.25 million raised via a private placement in mid-December.
Mount Lindsay opportunities
Overall, the funding runway means an updated feasibility study for the company’s Mount Lindsay Tin-Tungsten Project in Tasmania is funded to completion.
In addition, the cash injection will help the project developer test high-priority targets at Mount Lindsay in the new year.
Venture is out to find the next major tin discovery at the Tasmanian asset, which sits within the nation’s premier tin district.
Earlier this month, a drilling campaign at the tin-tungsten play returned a record-breaking intersection, grading 147 metres at 1% tin and 0.2% tungsten from 90 metres.
At the time, Venture managing director Andrew Radonjic said: “This new drilling at Mount Lindsay, focused on the high-grade zones, is starting to unveil the exceptional value that Mount Lindsay truly holds.
“At current metal prices, this 147-metre drill intersection has an average recovered value of A$680 per tonne, taking into account metallurgical recovery test-work from our previous feasibility study.
“This high value per tonne makes Mount Lindsay a very attractive proposition for underground mining.”
The fine print
Thanks to the share purchase plan subscriptions, roughly 166.66 million VMS shares will be issued to shareholders in the coming weeks.
A scale-back took place so the $6 million worth of VMS shares were allocated as fairly and equitably as possible.
Shareholders can expect to receive their new parcels on January 6, 2022, with trading to commence the following day.
Applicants will receive a letter in the coming days to confirm their personal allocations and how to receive a refund, if applicable.