Vertex Minerals (ASX:VTX) plans to accelerate underground development work and begin mining at the Hill End Gold Project in New South Wales, via a $12 million capital raise.
Blue Ocean Equities and CPS Capital Group will act as joint lead managers.
Under a placement, 35.7 million shares will be issued to raise $7.5 million. A share purchase plan is also being undertaken to raise up to $1 million.
Further, a convertible loan issuance aims to raise $3.5 million. The convertible loan will be converted into shares at the same price as the placement. The loans will have an interest rate of 10% per annum, with interest to be calculated and accrued monthly, on a compounding basis.
Participants will be issued one free attaching listed option per three new shares subscribed for, exercisable at $0.25.
The capital raise will provide Vertex with funds to begin mining by July 2025, as the company emerges as Australia’s next high-margin gold producer.
Executive Chairman Roger Jackson says with the processing circuit operating on historical stockpiles, it’s now only months before the company begins underground mining.
“The team at Hill End is excited at the prospect of mining one of Australia’s highest grade gold mines, with our resource at a very high 16.7 grams per tonne gold in-situ,” Jackson says.
“This capital raising provides our remaining capital expenditure and working capital over May / June ahead of underground mining in July.
“With over $25 million spent by previous owners on underground development and the ore sorter and processing plant in place and operating successfully, we believe Vertex is on the cusp of a period of significant cash generation from our uniquely high-grade gold operation.”
The Hill End Project has an existing resource of 419,000 tonnes @ 16.7g/t gold for 225,200 ounces of gold.
A Prefeasibility Study completed in February 2024 contemplates production up to 30,000 ounces of gold at below an all-in sustaining cost of $2,000 per ounce, with the potential for attractive margins at a time of a strong gold price.
The gold price is currently sitting at $5,095.85 per ounce as of 11am AEDT today, as reported by the ABC Bullion.
Write to Aaliyah Rogan at Mining.com.au
Images: Vertex Minerals
