VRX Silica (ASX: VRX) today announced that it has received binding commitments for a capital raising via a share placement to institutional, professional and sophisticated investors to raise $7 million before costs.
VRX’s Managing Director, Bruce Maluish said, “We are delighted with the strong support received for the capital raising from a wide range of investors, with bids received well in excess of the amount raised.
“This placement positions VRX to rapidly advance the development of our silica sand projects, in particular at Arrowsmith North for grade control drilling for the first 10 years of production, confirmatory test work, drilling and equipping water bores, port access design, construction of access roads and final engineering.”
The placement will be conducted at 18 cents per share, which represents a 23.4% discount to the last closing price of VRX shares on ASX of 23.5 cents and a 13.6% discount to the 10-day VWAP of 20.8 cents as at the same date. A total of 38.9 million new shares will be issued within the Company’s current placement capacity under Listing Rule 7.1. The new shares will rank equally with existing VRX fully paid ordinary shares on issue.
Funds raised under the placement will be allocated to pre-production preparatory work at VRX’s Arrowsmith North Silica Sand Project, additional drilling at VRX’s Muchea and Boyatup Silica Sand Projects, and general working capital.
The placement is scheduled to settle on 27 November 2020.
Euroz Hartleys Limited (AFSL No 230052) acted as lead manager to the placement.