Venari Minerals secures oversubscribed A$6.1 million raising to accelerate Red Mountain

Venari Minerals NL (ASX:VMS, OTC:ASMTD) is raising A$6.1 million capital to advance its flagship Red Mountain Lithium and Strategic Minerals Project in Nevada, United States.

The money will support further drilling, metallurgical test work, an updated mineral resource estimate incorporating potential by-products and delivery of a scoping study targeted for the first quarter of 2027. 

The company-led oversubscribed raising comprises a two-tranche A$4.75 million placement and a A$1.35 million convertible note.

Venari will issue 59.375 million shares under the placement at A$0.08 each, representing a 5.9% discount to its last traded price and a 22.1% discount to the 15-day volume-weighted average price.

Investors will also receive one free-attaching option for every 10 shares subscribed, exercisable at A$0.12 for approximately two years. The company plans to seek ASX quotation for the options following shareholder approval.

The A$1.35 million unsecured convertible note has a two-year term and carries an interest rate of 8% per annum.

Advancing Red Mountain

Proceeds will be directed towards infill and extensional drilling at Red Mountain, as well as a systematic metallurgical test-work program.

Venari intends to add recently identified potential strontium and magnesium by-products to the project’s mineral resource estimate and upgrade the high-grade northern portion of the resource from the inferred to indicated category.

The work is expected to underpin an updated scoping study examining the project’s development potential.

Executive chair Tony Leibowitz said the oversubscribed raising reflected investor confidence in Red Mountain and the company’s development strategy.

“With this funding in place, I look forward to seeing Red Mountain advance rapidly to the next level, with an updated MRE incorporating the by-products and delivery of a Scoping Study by early next year,” he said.

Loyalty options for shareholders

Venari also proposes to issue eligible existing shareholders one loyalty option for every 10 shares held.

The loyalty options will carry the same A$0.12 exercise price and approximately two-year term as the placement options, with entitlements expected to be determined on July 30, 2026.

About Venari Minerals

Venari Minerals is an ASX-listed exploration and development company focused on the Red Mountain Lithium and Strategic Minerals Project in Nevada.

The company is advancing the project through resource definition, metallurgical studies and economic evaluation, with a particular focus on its lithium mineralisation and potential high-value strategic mineral by-products.