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Venturex Resources Ltd (ASX:VXR) is into exploration for base metals & and Copper-Zinc Exploration in Australia.
The company, today on 18 March 2019, declared that it had received firm commitments for an institutional placement comprising of approximately 16.6 million shares at an issue price of 22c per share to raise a total of $3.65 million before costs (âPlacementâ).
Besides, Northern Star Resources Limited will convert the remaining $1.0 million of the loan made to Venturex increasing their Shareholding to 19.88%.
The new Placement shares represent approximately 6% of existing shares on issue, and the Placement is being undertaken within the Companyâs available placement capacity according to ASX Listing Rule 7.1 (15,206,019 shares) and 7.1A (1,384,891 shares).
The Placement has received strong support from new institutional and sophisticated investors and will result in the introduction of many new high-quality institutional, sophisticated and strategic investors to the Companyâs share register.
Funds raised through the Placement will primarily be used to progress the Sulphur Springs Project Implementation Plan, including placing long-lead items, final designs and schedules and finalising project finance and permitting. A part of these funds shall also be deployed to undertake a new drilling program (scheduled to commence shortly) targeting a series of high-priority targets located along strike from the Sulphur Springs deposit within the Panorama VMS trend as well as for general working capital needs.
The companyâs Managing Director AJ Saverimutto said that the management is pleased to welcome many new, high-quality institutional investors onto the companyâs register as part of a strongly supported capital raising programme. He also said that the management is very thankful to the Northern Star for their strong and continued support for the project. The funds raised will further strengthen the companyâs balance sheet, ensuring that the management can maintain the current high level of momentum with the Project Implementation Plan at Sulphur Springs, while at the same time resuming exploration activity with a new drilling program targeting several exciting near-mine targets. He again emphasised that he is thankful to the investors who have participated in this Placement for their continued support.
The Placement price of 22 cents per share represents a discount of 2.2% to the companyâs last closing price of 22.5c on Wednesday, 13 March 2019. Settlement of the Placement is expected to occur on Wednesday, 20 March 2019 with Placement shares scheduled to be allotted and commence trading on the ASX on Thursday, 21 March 2019. The New Shares will rank equally with the Companyâs existing fully-paid ordinary shares.
On the price-performance front, the stock has posted the YTD return of 32.35%. At the time of writing (18 March 2019), the stock of the company was trading at a price of $0.25, up 11.111% during the dayâs trade with a market capitalisation of ~$ 58.19 Mn. The stock opened the day at $ 0.225, reached the dayâs high of $ 0.255 and touched the dayâs low of $ 0.225, with an average daily volume of ~ 200,615. It had a 52-week high price of $ 0.265 and a 52 Weeks low price of $ 0.150, with an average volume of, 206,518 approximately.
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