Venturex Resources Ltd (ASX: VXR) explores for base metals in Australia. The company has briefed in its latest release that it has continued to make strong progress in the process of securing the required finance for the development of its fully owned Sulphur Springs Copper-Zinc Project. This project is in Western Australia’s Pilbara region.
Key Points regarding the above are as follows:
• Several Expressions of Interest (EOI’s) received from domestic and international banks for senior project debt finance facilities. Further EOI’s expected this month.
• Off-take funding proposals under review would complement senior project debt arrangements.
• The official tender process for plant construction set to begin next month with the contract award to follow. Early Contractor Engagement and recruitment program now in full swing.
After performing a roadshow of potential financiers in November – December 2018, the company has now started receiving various EOI’s from the domestic as well as international banks and other financiers. Simultaneously, the company is advancing its negotiations with various potential off-take counterparties who have the desire to take part in the Project’s copper and zinc concentrates. The company also has received several proposals from strong off-taker groups, all of which include the provision of potential off-take funding. This financing would be complementary to the senior debt facilities currently being progressed. Further, the proposals from potential off-takers are expected during January 2019.
The Early Contractor Engagement strategy with regards to process plant design and implementation are being engaged into. The purpose of this process is to provide potential plant constructors with the opportunity to optimize plant construction methodologies and timelines further and gain a deeper understanding of both Project and Company goals.
Key contractors have also been short-listed for major works including a relocation of the Spinifex Ridge accommodation camp, site access road expansion, and construction. Personnel for key operational positions, including Project Construction Manager and Mining Manager, are currently being interviewed with many high-quality applicants under consideration.
As the Company approaches project construction, many optimization opportunities and cost reduction strategies are being investigated to ensure an on-time and on-budget construction of the Sulphur Springs Project.
The Company’s exploration team is undertaking preliminary works before re-commencing exploration activities following the conclusion of the Pilbara wet season.
Stage two exploration activities are scheduled to begin at the Breakers Prospect, located ~12km south of Sulphur Springs along the Panorama VMS trend, during Q1 2019. It is anticipated that the successful conclusion of this survey will allow the Company’s geologists to complete the additional earthworks required to access the highest priority areas for further targeted drill testing. The geological understanding at the Breakers prospect also continues to evolve. A recently completed structural interpretation by the Company’s geological team has identified a potential shear zone at the prospect which is interpreted to have significant control over the massive sulphide mineralization.
In the meantime, the stock price of the company has fallen by 19.05 percent in the past six months as on 11 January 2019. VXR’s shares traded at $0.165, down by 2.941% (intraday) & it has a market capitalization of circa $43.90 Mn as on 14 January 2019.