VRX Silica Limited (ASX: VRX) has received commitments for a capital raising via a share placement to professional and sophisticated investors to raise approximately $2.26 million. The proceeds will be used to fund completion of feasibility studies and progress environmental approvals and mining lease applications at VRX’s Arrowsmith and Muchea silica sand projects.
VRX Silica Limited ASX: VRX) has received commitments for a capital raising via a share placement to professional and sophisticated investors to raise approximately $2.26 million before costs.
The Placement received strong support from a range of sophisticated and institutional investors together with existing shareholders and will result in the issue of 37,666,666 new fully paid ordinary shares at an issue price of $0.06 per share. The Placement falls within the Company’s current placement capacity under Listing Rule 7.1.
VRX directors have committed to subscribe for an aggregate of 4,333,333 shares under the Placement, representing approximately $260,000, subject to shareholder approval.
VRX’s Managing Director, Bruce Maluish commented: “We are delighted with the strong support received for the Placement from a wide range of investors.
“The Placement positions VRX to continue to rapidly progress both the Arrowsmith and Muchea Silica Sand Projects. Near term activity includes an updated JORC Resource following the completion of our recent drilling program and the release of a bankable feasibility study, currently targeted to be completed in the early part of the September quarter 2019.”
Funds raised under the Placement will be allocated to completion of feasibility studies and progression of environmental approvals and mining lease applications at the Company’s Arrowsmith and Muchea Silica Sand Projects.
A portion of the net Placement proceeds will be directed towards exploration activities at the Company’s Boyatup Silica Sand Project and Warrawanda HPQ Project and for general working capital.The Placement (excluding VRX director participation) is scheduled to settle on 9 April 2019.
The Company will convene a general meeting of shareholders to seek approval for the issue of shares to VRX directors as soon as practicable. Hartleys Limited (AFSL No 230052) acted as lead manager to the Placement.