Venari Minerals (ASX:VMS) has announced it has received commitments for an oversubscribed $6.1 million capital raising to fund drilling, metallurgical test work, and a Scoping Study at its Red Mountain Lithium and Critical Metals Project in Nevada, US.
The raising comprises a $4.75 million two-tranche placement at $0.08 per share and a $1.35 million convertible note subscribed for by a “high-net-worth investor”.
The placement price represents a 5.9% discount to Venari’s last traded price of $0.085 and a 22.1% discount to its 15-day volume-weighted average price of $0.1028.
Proceeds will fund infill and extensional drilling, metallurgical testing, and an updated mineral resource estimate (MRE) incorporating potential strontium and magnesium by-products. Venari also plans to upgrade the northern part of the resource from inferred to indicated.
The Scoping Study is targeted for completion in Q1 2027.
“With this funding in place, I look forward to seeing Red Mountain advance rapidly to the next level, with an updated MRE incorporating the by-products and delivery of a Scoping Study by early next year,” Executive Chairman Tony Leibowitz says.
The first placement tranche will raise $1.77 million through 22.10 million shares under Venari’s existing placement capacity.
The second tranche comprises 37.28 million shares to raise $2.98 million, subject to shareholder approval expected to be sought at a general meeting around 19 September.
Venari’s directors have agreed to subscribe for $261,000 of the second tranche. Placement participants will also receive one free option for every 10 shares subscribed, exercisable at $0.12 for approximately two years.
The director participation and option issue are subject to shareholder approval, after which Venari plans to seek quotation of the options on the ASX.
The unsecured convertible note has a two-year term and carries interest of 8% per annum. Venari will repay the principal every six months through shares issued at $0.08, with each issue representing a 3% increase in its issued capital. The repayments require shareholder approval.
Venari Minerals is an exploration company focused on critical and precious metals in Australia and the US.
Write to France Pinzon at Mining.com.au
Images: Venari Minerals
