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Highlights
- VRX has announced a share placement and SPP to raise AU$3 million.
- The placement and SPP comprise free-attaching options on a 1:2 basis.
- Funds from the capital raise will be employed at Arrowsmith North and Muchea.
Pureplay Silica firm VRX Silica Limited (ASX: VRX) has launched a capital raise of AU$3 million through a placement and share purchase plan (SPP). The placement will raise of AU$1.5 million, before costs, by issuing 12.5 million company shares at an offer price of 12c per share.
Under the SPP, VRX aims to raise further AU$1.5 million. Eligible shareholders, as on the record date of 25 August 2023, can apply for up to AU$30,000 worth of shares at 12c per share (issue price). The offer is anticipated to open on 4 September 2023 and close on 22 September 2023. The SPP offer is not underwritten.
The issue price of 12c per share represents a 17.2% discount to the last closing price of 14.5c and a 20.4% discount to the 5-day VWAP of 15.1c.
Canaccord Genuity (Australia) Limited has been appointed as the lead manager for the capital raise.
Free-attaching options under the placement and SPP
Participants of both placement and SPP will be entitled to subscribe to free-attaching options. One free option will be offered for every two shares issued as a part of the capital raise.
The free attaching option’s exercise price will be 18c with an expiration date of 31 August 2025.
Use of funds
Proceeds from the raise will be directed towards equipment purchase and further work ahead of expected approvals at Arrowsmith North. Also, the funds will be used to conduct further work at Muchea.
VRX shares traded at AU$0.13 apiece at the time of writing on 28 August 2023.
