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- The prospect of a recapitalisation effort for Venturex Resources (VXR) has sent shares rocketing into the green during afternoon trading
- Northern Star Resources (NST) founder Bill Beament is set to take up a major shareholder position in the base metals exploration company, subscribing for $8.9 million in VXR securities
- A further $5.1 million is available to institutional and professional shareholders, which could take raise to approximately $14 million
- Venturex Executive Director Anthony Reilly has described the move as a “game-changer” for the company
- Venturex Resources shares are up a stellar 140 per cent following the announcement, trading at 25.3 cents each
The prospect of a recapitalisation effort for Venturex Resources (VXR) has sent shares rocketing into the green during afternoon trading.
Northern Star Resources (NST) founder Bill Beament is set to bid for $8.9 million shares in the base metals exploration company, in a move that would see him become a major shareholder should it be approved.
It forms part of a $14 million placement currently underway, with the remaining $5.1 million available to institutional and professional investors at the same price of 8 cents apiece.
Venturex says a one-for-seven underwritten entitlement offer will also be offered to existing shareholders to raise $4.4 million on the same terms.
Further to this, the placement and entitlement offer will also come with a one for two 13.5 cents attaching option, which could see Venutrex receive a further $15.5 million if converted.
Proceeds from the raise are expected to go towards development activities at the Sulphur Springs project, including infill drilling and regional exploration.
In a broader context, Venturex says it forms part of an overarching strategy to build the company to a higher high-growth supplier of new generation energy and technology materials.
There is also expected to be a flurry of board moves amid the restructure, with Anthony Reilly to succeed Tony Kiernan as Director and Executive Chairman and Bill Beament to join the board as a full-time executive director from July 1 2021.
Venturex Executive Director Anthony Reilly describes it as a “game-changer” for the company.
“The combination of the funding provided to the Company and the exceptional talents of those joining the Board will position Venturex to become a near term producer,” he explained.
The entire placement and attaching options are subject to shareholder approval.
Venturex Resources shares are up a stellar 140 per cent following the announcement, trading at 25.3 cents each at 12:56 pm AEDT.
