Vertex Minerals Announces $3.8M Placement to Boost Reward Gold Mine
VTX (VTX) Share Update August 2024 Sunday 11th
Vertex Minerals Secures $3.8M to Advance Reward Gold Mine
Vertex Minerals Limited (ASX: VTX) has successfully secured firm commitments for a $3.8 million placement to advance its high-grade Reward Gold Mine and support general working capital.
Instant Summary:
- Vertex Minerals raises $3.77M through a placement at $0.08 per share.
- Funds to be used for advancing the Reward Gold Mine and general working capital.
- Placement conducted in two tranches, with the second tranche subject to shareholder approval.
- Lead Managers CPS Capital to receive management and placing fees.
Placement Details
Vertex Minerals Limited (ASX: VTX) has announced that it has secured firm commitments for a placement to raise up to $3.77 million at an issue price of $0.08 per share before costs. The placement aims to advance the high-grade Reward Gold Mine to production and support general working capital needs.
The placement will involve the issuance of up to 47,125,000 new fully paid ordinary shares at $0.08 per share, along with one free attaching VTXO option for every three shares. These options will have an exercise price of $0.15 per share and will expire on 17 July 2027. The issue price represents a 5% discount to the last traded price and the 5-day VWAP.
Tranches and Approvals
The placement will be conducted in two tranches. The first tranche of 11,277,333 shares will be issued under the company's 7.1A capacity, while the second tranche and all options will be subject to shareholder approval. CPS Capital has been appointed as the lead manager for the placement.
Capital Structure Post Placement
Following the placement, the total number of shares on issue will increase from 122,773,332 to 169,898,332. CPS Capital and its nominees will receive various fees and options for managing the placement, including a management fee of 2% of the total gross proceeds and a placing fee of 4%, plus GST.
About Vertex Minerals
Vertex Minerals Limited is an Australian-based gold mining and exploration company focused on developing its advanced Hill End gold projects located in the highly prospective Eastern Lachlan Fold Belt of Central West NSW. The company also owns the Pride of Elvire gold project and Taylor Rock gold/nickel/lithium project in the Eastern Goldfields of WA. Vertex Minerals is committed to advancing the commercial production of gold from its NSW projects while maintaining an ethical and environmentally sustainable approach.
The successful placement of $3.77 million will significantly bolster Vertex Minerals' financial position, enabling the company to advance its high-grade Reward Gold Mine towards production. This funding is expected to enhance the company's operational capabilities and potentially increase its stock value as the project progresses. The 5% discount on the issue price may attract more investors, while the free attaching options provide additional incentives.
Investor Reaction:
Analysts are likely to view this placement positively, as it demonstrates strong investor confidence in Vertex Minerals' projects and management team. The funding will provide the necessary capital to advance the Reward Gold Mine, which could lead to increased production and revenue in the future. However, the impact on the stock price will depend on the successful execution of the project and the overall performance of the gold market.
Conclusion:
Investors should keep an eye on Vertex Minerals' progress with the Reward Gold Mine and consider the potential long-term benefits of this placement. The company's commitment to ethical and environmentally sustainable practices adds to its appeal. Stay informed about Vertex Minerals' developments and evaluate the potential impact on your investment portfolio.