Venus Metals Secures $416,000 Private Placement with QGold Pty Ltd
VENUS METALS CORPORATION LIMITED (VMC) Share Update September 2024 Thursday 26th
Venus Metals Announces $416,000 Private Placement with Major Shareholder QGold Pty Ltd
Venus Metals Corporation Limited (ASX: VMC) has announced a significant private placement with its major shareholder, QGold Pty Ltd, to raise $416,000 for additional working capital and exploration expenses.
Instant Summary:
- Private placement of 6,400,000 fully paid ordinary shares.
- Placement price at $0.065 per share, a premium to the last closing price of $0.061.
- Funds raised will be used for working capital and exploration expenses.
- No broker fees incurred as the placement was arranged directly by the company.
- QGold Pty Ltd's voting power in Venus Metals to increase to approximately 22.34%.
Details of the Private Placement
Venus Metals Corporation Limited (ASX: VMC) has received an application from its major shareholder, QGold Pty Ltd, for 6,400,000 fully paid ordinary shares at a price of $0.065 per share. This placement will raise a total of $416,000, which will be used for additional working capital and exploration expenses.
The placement price of $0.065 per share represents a premium to the last closing price of $0.061 on 26 September 2024. The company arranged the placement directly, thus incurring no broker fees, which is a positive aspect for the company's financials.
Shareholder Impact
The new shares will be issued using Venus Metals' existing placement capacity under ASX Listing Rule 7.1. An Appendix 3B in relation to the new shares will follow by a separate announcement. Once issued, the new shares will rank equally with the existing fully paid ordinary shares in the company.
With the issuance of these new shares, QGold Pty Ltd's substantial shareholding in Venus Metals is expected to increase to approximately 22.34%. This increase is in reliance on section 611 item 9 of the Corporations Act 2001 (Cth), also known as the 'creep' exception.
Background on QGold Pty Ltd
QGold Pty Ltd is controlled by Christopher Wallin, a successful and experienced mining industry professional. Mr. Wallin was previously the Queensland government's chief coal geologist before founding QCoal in 1989. He currently serves as the Chairman of the QCoal Foundation and the Managing Director of QCoal Group.
The company appreciates the continued support of Mr. Wallin, whose expertise and leadership are invaluable to Venus Metals' ongoing projects and future growth.
This private placement is a positive development for Venus Metals, as it secures necessary funds for working capital and exploration without incurring additional costs from broker fees. The premium placement price indicates strong investor confidence, particularly from a major shareholder like QGold Pty Ltd.
QGold's increased voting power to 22.34% could lead to more strategic influence over company decisions, potentially steering Venus Metals towards more successful ventures in the mining sector.
Investor Reaction:
Analysts are likely to view this private placement positively due to the premium pricing and the direct arrangement, which avoids broker fees. The increased stake by QGold Pty Ltd, controlled by an experienced industry professional, is expected to boost investor confidence in Venus Metals' future prospects.
Conclusion:
Investors should keep an eye on Venus Metals' upcoming exploration activities and financial performance, as the additional funds from this private placement are expected to drive significant progress. The continued support from a major shareholder like QGold Pty Ltd bodes well for the company's future.