Venture Minerals Limited (ASX:VMS*) *has received firm commitments from sophisticated, professional, and institutional investors to raise $10 million to fully funds development at the Riley Iron Ore Mine in northwest Tasmania.
The new capital injection will allow the company to complete the final stages of the Wet Screening Plant construction and commissioning paving the way for Venture to deliver its first iron ore shipment in Q2 2021.
Managing Director, Andrew Radonjic, said the capacity the raise the required funds via a placement was attractive.
Venture was focused on financing the construction and commissioning of the Wet Screening Plant through debt however, the opportunity had presented itself to raise equity given the recent strength in the company’s share price; a result of exploration success at the Golden Grove North and Kulin Projects and sustained increases in iron ore prices,” Mr Radonjic said.
“The Board believes the ability to raise equity significantly de-risks the project and the potential impact on the company as it transitions from an explorer to a producer.
“Riley’s short mine life and quick time to production presents a unique opportunity to capitalise on the current historically high iron ore price and realise significant cash-flow for Venture in the near-term. The Board looks forward to the commencement of mining at Riley and Venture’s exciting future as both an explorer and producer.
“Iron ore prices have been strong throughout 2020 and into 2021 with the outlook for the rest of the calendar year remaining positive due to continued demand generated by Chinese government infrastructure spending and ongoing supply concerns from Brazil,” he said.
In addition to the support of the Riley Project, funds will be utilised on exploration at Venture’s priority exploration Project at Golden Grove North, as it looks to target extensions to the recent drill intersections of up to 7% Zinc, 1.3% Copper and 2.1g/t Gold at Orcus and other newly identified, strong EM conductors situated along the VMS Target Zone.
Funds will also be utilised at the 100% owned Kulin Project, with the recent commencement of drilling as part of the minimum 3000 metre drilling program currently underway in Western Australia, designed to bring forward a potential new gold discovery.