Vertex Minerals (ASX:VTX) has secured $4.2 million in convertible loan facilities to advance gold processing at its Hill End Gold Project in New South Wales.
The commitments come from sophisticated and professional investors, including $600,000 from Executive Chairman Bruce McInnes. Unrelated investors account for up to $3.6 million.
Subject to shareholder approval, the principal and accrued interest convert into ordinary shares at the lower end of $0.14 per share or the five-day volume-weighted average price prior to maturity.
Investors receive one free-attaching VTXO option for every three shares issued on conversion. The options carry an exercise price of $0.15 and expire on 17 July 2027.
Under the terms, the loans carry a 10% per annum compound monthly interest rate. Maturity occurs five business days after shareholder approval or four months post-meeting if approval is not obtained.
If approval is not secured by 31 December 2026, the debt becomes payable in cash within four months of the meeting date.
McInnes says the funds aim to progress gold processing at Reward Mine following recent approval for 24/7 underground operations and commissioning of the processing plant and TOMRA ore sorter.
“The new funding will assist Vertex to further develop gold processing at Vertex’s Hill End Gold Project, its Reward Mine,” McInnes says.
Vertex says proceeds will be earmarked for the progression to mainstream underground production and sales at the Reward Gold Mine, as well as exploration below Reward at Fosters following an updated mineral resource estimate.
Underground diamond drilling is scheduled to start in Q1 2027.
Vert Capital is acting as lead manager for this transaction.
Vertex Minerals is a gold explorer and developer operating the 100%-owned unhedged Reward Mine in NSW, where processing has commenced using a gravity gold plant that is achieving a recovery rate of 95%.
Write to Paula Fabe at Mining.com.au
Images: Vertex Minerals
