Vertex Minerals Completes Convertible Loan Financing for Reward Gold Mine
VERTEX MINERALS LIMITED (VTX) Share Update December 2024 Monday 23rd
Vertex Minerals Secures $5.1M Convertible Loan for Reward Gold Mine
Vertex Minerals Limited (ASX: VTX) has successfully secured a $5.1 million convertible loan to advance its Reward Gold Mine project, marking a significant step towards commencing production.
Instant Summary:
- Vertex Minerals raises $5.1M through a convertible loan agreement.
- Funds to be used for gold plant completion and underground mine development.
- Loan convertible to shares at $0.17 per share with a 10% interest rate.
- CPS Capital Group acted as the lead manager for the capital raising.
Financing Details
Vertex Minerals Limited has announced the completion of a $5.1 million convertible loan financing. This funding is crucial for the company as it prepares to commence production at its Reward Gold Mine. The convertible loan is structured as an unsecured facility with a two-year term and a 10% interest rate. Investors have the option to convert their loan into fully paid ordinary shares at an issue price of $0.17 per share.
The proceeds from this financing will be directed towards the completion of the gold plant, infrastructure development, underground mine development, sustaining costs, and working capital. This strategic move comes as Vertex aims to process its gold stockpiles and begin underground mining operations in the upcoming year.
Investor Incentives
Vertex has structured the loan to include incentives for early conversion. If investors choose to convert their loan amounts within the first six months, they will receive two free attaching VTXOA options for every five shares issued. These options are exercisable at $0.25 on or before 17 July 2026, providing additional value to early investors.
Role of CPS Capital Group
CPS Capital Group served as the lead manager for this capital raising effort. They are set to receive a management fee of 2% of the total gross proceeds, along with a placing fee of 4%, plus GST. Additionally, CPS and its nominees will receive 1,500,000 listed VTXOA options as part of their compensation, subject to shareholder approval.
This financing arrangement positions Vertex Minerals to advance its Reward Gold Mine project significantly. By securing the necessary funds, Vertex can focus on completing essential infrastructure and commencing production, which could enhance its market position and potentially increase its stock value. The conversion option at $0.17 per share might attract interest from investors looking for long-term growth opportunities.
Investor Reaction:
Analysts may view this financing as a positive step for Vertex Minerals, reflecting strong support from institutional investors. The absence of onerous covenants and security obligations in the loan terms is likely to be seen favorably, potentially boosting investor confidence in the company's strategic direction.
Conclusion:
Vertex Minerals' successful completion of this financing marks a pivotal moment in its journey towards gold production. Investors should keep an eye on the company's progress in developing its Reward Gold Mine and consider the potential long-term benefits of this strategic move.