VRX Silica (ASX: VRX) has successfully completed a bookbuild to raise $4 million (before costs) through a placement of securities to a range of sophisticated and institutional investors, including existing shareholders and new investors.
· Commitments received for a placement to raise $4 million
· Exceptional support from existing shareholders and new sophisticated and institutional investors
· Strengthened balance sheet allows VRX to accelerate the development of its Arrowsmith and Muchea silica sand projects
Funds raised under the placement will be used to accelerate the advancement of the Company’s Arrowsmith North, Arrowsmith Central and Muchea silica sand projects, including for permitting and approvals, long lead capital items, detailed engineering work, hydro and resource drilling, and for working capital purposes.
Commenting on the successful capital raising, VRX’s Managing Director Bruce Maluish said, “We are delighted with the strong demand shown by both new and existing shareholders in this placement, including a number of institutional investors.
“The recent BFSs for our Arrowsmith North, Arrowsmith Central and Muchea silica sand projects demonstrate the world class potential of our projects and the funds raised will allow us to rapidly advance their development.”
The placement will result in the issue of 34,782,610 new fully paid ordinary shares at an issue price of 11.5 cents each. Participants in the placement will also be issued with one option for every two shares subscribed for in the placement exercisable at 18 cents and expiring 18 months from their date of issue.
The Company will apply for quotation of the options on ASX subject to meeting ASX listing rule requirements. The placement falls within the Company’s current placement capacity under Listing Rule 7.1 and is scheduled to settle on Tuesday, 12 November 2019.
Hartleys Limited acted as lead manager to the placement.