Venture Minerals Limited (ASX:VMS, OTC:VTMLF) has opened a A$3 million share purchase plan to eligible shareholders, inviting them to stake their claim in a 166.7 million share pool at a 20% discount to Venture’s 5-day volume-weighted average price.
Shareholders can pick up new securities at A$0.018 a pop, with one free-attaching option available with every three shares subscribed for.
The company will use the funding runway to explore and conduct metallurgical test-work at the flagship Mount Lindsay Tin-Tungsten Project in Tasmania. The cap raise will also support follow-up drilling across the company’s newly expanded rare earths portfolio in WA.
Venture reserves the right to accept oversubscriptions and plans to close the offer in mid-May. New shares are slated for issue and quotation roughly one week later, while options should reach shareholders’ pockets in June.
Emerging critical minerals brand
Venture managing director Andrew Radonjic said: “Venture’s big push into the rare earth element (REE) space, after acquiring an additional four priority REE targets in WA and then identifying extensive tin-boron rich zones at Mount Lindsay, is setting the company as a significant critical minerals mining-exploration business.
“This share purchase plan allows Venture to advance this strategy and continue towards making a significant discovery throughout its diversified portfolio of critical minerals assets and to advance Mount Lindsay as it seeks to become a significant development play in this sector.”
Venture says Tasmania’s Mount Lindsay project is one of the world’s largest undeveloped tin and tungsten deposits — an important resource as global reliance on critical minerals continues to increase.
The explorer is in the midst of an underground feasibility study, designed to leverage off previously completed open-pit work. The share purchase plan will accelerate key test-work activities, including a boron study that will feed into development considerations.
Beyond the Apple (NASDAQ:AAPL) Isle, Venture is advancing rare earth opportunities on Australia’s west coast.
The company’s rare earth projects include the Vulcan, Kulin North and Kulin South REE targets, as well as the newly acquired Bandy and Brothers projects.
Venture will use the share purchase plan cash to support project generation and provide working capital for its WA endeavours.