Venture Minerals (ASX:VMS) is looking to raise an additional $2.29 million under the second tranche of a placement which will be used for the Jupiter resource and exploration drilling, after raising $609,000 under a share purchase plan.
Subject to shareholder approval, 120.61 million shares will be issued to professional and sophisticated investors and certain directors of the company.
The SPP, which comprised the issue of about 32 million shares at $0.019 per share, follows the first tranche of a previously undertaken placement, raising $6.2 million from cornerstone, institutional, and sophisticated investors.
Together, with the first tranche of the placement, Venture Minerals raised $6.8 million.
Concurrently with resource and exploration drilling, Venture Minerals, which has a market capitalisation of $43.9 million, will be using the proceeds for assaying, metallurgical studies, preliminary studies, including environmental and heritage work.
CEO Philippa Leggat says the support has flowed through to the feedback on its strategy to focus on the Jupiter Project.
“We’re in the privileged position of being well-funded and the capital we’ve raised is already being put to good use,” Leggat says.
“The first samples from the regional drilling program on the Brothers Project surrounding Jupiter are headed back to Perth for analysis. Next, we’re forging ahead with the new round of aircore drilling in the high-grade zones at Jupiter.
“We also have a diamond rig starting to drill this week that’ll give us density measurements for the maiden resource estimate that’s planned for the end of the year. On top of that, we’ll java metallurgy results which will also feed into the resource estimate.”
The company says it is in a “strong” financial position post capital raising, with an indicative cash position of $10.9 million.
Venture Minerals currently holds 1,103km2 of prospective rare earths tenure in Western Australia. The company is focused on developing rare earths and critical mineral deposits to meet global demand for minerals vital to modern technology and the green energy transition.
Write to Aaliyah Rogan at Mining.com.au
Images: Venture Minerals
