- Venture Minerals is undertaking $5.7 million in capital raising.
- The funds will be used to continue feasibility studies of the Riley Iron Ore Mine, located in Tasmania.
- The board are set to vote on whether funding will be used in the production of the mine.
Venture Minerals is pursuing $5.7 million in capital raising to fund a feasibility study of its fully owned Riley Iron Ore Mine, located 10km from the Mount Lindsay Project, Tasmania.
The $1.56 million is expected to be raised via a placement and a two-for-five rights issue is expected to raise $4.16 million, both at $0.02 per share. Shares of 78,091,800 will be issued as part of the placement and are expected to be complete by 28 May 2019.
Additionally, subject to shareholder approval, for every two new shares gained under the rights issue, one free attaching option will be offered at $0.035, which expires on 18 June 2020. According to the company, all Directors at Venture will participate in the rights issue.
On top of the feasibility study at the Riley Iron Ore Mine, the board members of Venture are deciding whether funds raised will go towards the production of the mine. Previous testing at the site showed a 90 per cent conversion rate from resource to reserve.
Venture finished a large amount of pre-production work at the Riley DSO Deposit in 2014, leaving it virtually ready to commence mining. However, the company abandoned the project after a sharp decline in iron ore prices. Though the site is adequately prepared in mining is to commence.
The company initially struggled with obtaining environmental approval from the Federal Government to begin the potential production of the Riley Iron Ore Mine. This was cleared up in 2015, and Venture is still seeking the recovery of legal costs.
The Mount Lindsay Project, where the Riley Iron Ore Mine is located near, spans over 148km2 and has accomplished over 83,000m of diamond core drilling. Venture fully owns the project which has access to hydro-power, water, sealed roads, rail and port facilities.