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Venari Minerals (ASX: VMS) has secured commitments for a $6.1 million capital raising to fund the next stage of development at its flagship Red Mountain Lithium and Strategic Minerals Project in Nevada.
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The funding package comprises a two-tranche share placement raising $4.75M and a further $1.35M through a convertible note. Proceeds will be used to expand exploration, upgrade the project’s resource estimate, undertake metallurgical test work and complete a Scoping Study targeted for first quarter CY27.
The placement attracted commitments from institutional, sophisticated and high-net-worth investors at an issue price of 8cps. The raising will be completed in two stages. The first tranche, valued at ~$1.77M, is expected to settle by the end of July under the company’s existing capacity. The remaining $2.98M tranche is subject to shareholder approval at a meeting, expected September 19.
Alongside the placement, Venari has secured a $1.35M unsecured convertible note with a two-year term and an annual interest rate of 8%.
The company said the fresh capital will support several development milestones at Red Mountain, including additional infill and extension drilling, evaluating potential by-products including strontium and magnesium, and commencing a systematic metallurgical test work program ahead of a planned scoping study.
Executive chairman Tony Leibowitz said the oversubscribed raising demonstrated strong investor confidence despite challenging market conditions.
Red Mountain is Venari’s flagship lithium and strategic minerals project in Nevada, where the company is seeking to expand both the scale of the resource and the potential economic contribution from associated critical mineral by-products as it progresses towards future development studies.
VMS is trading at 85cps.
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