Emerging WA silica play Ventnor Resources (ASX: VRX) has capitalised on surging investor interest in its Arrowsmith project north of Perth to launch a 1-for-8 non-renounceable rights issue, priced at 3.5c a share. The offer should raise about $980,000 and will generate funds for Ventnor to do further test work and exploration across Arrowsmith and its other projects. Ventnor shares have doubled over the past two weeks and last traded at 5c.
Ventnor Resources Limited (ASX: VRX) (Company) is pleased to announce a 1 for 8 non renounceable rights issue of approximately 27,924,449 fully paid ordinary shares to eligible shareholders to raise approximately $977,356 (before costs) at 3.5 cents per share (Rights Issue), which represents a discount of approximately 21% from the 10-trading day VWAP of the Company’s shares on ASX. The offer includes a top-up facility under which eligible shareholders may apply for additional shares.
Funds raised from the Rights Issue will be used to conduct further prospect reviews, market evaluations, exploration programs, testwork and feasibility studies on the Company’s existing and future projects (including evaluating the recently announced Arrowsmith project to potentially supply sand to the construction, glass making and proppant industries), costs of the issue, and for general working capital and administration purposes.
The proposed timetable for the Rights Issue is as follows:
The Directors may extend the Closing Date by giving at least 3 Business Days’ notice to ASX prior to the Closing Date, subject to the Corporations Act and Listing Rules. As such the date the New Shares are expected to commence trading on ASX may vary.
The Rights Issue is not underwritten.
Further details and other important information about the Rights Issue are set out in the Company’s Rights Issue Offer Document, which was also lodged with ASX today and will be mailed to eligible shareholders shortly after the Record Date, together with a personalised entitlement and acceptance form.
An Appendix 3B in respect of the Rights Issue and a “cleansing notice” pursuant to section 708AA of the Corporations Act 2001 have also been lodged with ASX today.