VRX Silica (ASX:VRX) is heading to market to raise $3.1 million via a renounceable entitlement offer partially underwritten by Canaccord Genuity (Australia).
The offer to shareholders is for one new share for every 13 shares held at an issue price of $0.07 each, with shareholders also set to receive one free attaching option, exercisable at $0.18 on or before 31 August 2025, for every two shares subscribed.
The news saw shares dip over 18% to an intra-day low of $0.073 on Wednesday (10 April 2024).
The issue price equated to a 22.2% discount to the closing price of VRX Silica shares on 5 April 2024 and a 19.9% discount to the company’s 15-day volume weighted average price up to and including 5 April 2024.
Canaccord has agreed to underwrite up to $2.6 million of the entitlement offer.
The offer closes at 3pm (AWST) on Tuesday, 30 April 2024.
VRX plans to use the fresh capital injection to advance its Muchea and Arrowsmith North Silica Sand projects in Western Australia, as well as for Vegetation Direct Transfer (VDT) rehabilitation trials, and environmental follow up.
VDT uses a front-end loader with a modified bucket attachment to translocate intact vegetation and topsoil during the rehabilitation process.
VRX is developing its portfolio of five silica sands projects in Western Australia, with the Arrowsmith North project the most advanced and slated to begin production this year subject to environmental approval.
Write to Angela East at Mining.com.au
Images: VRX Silica
