The placement at 11.5 cents per share was supported by a range of sophisticated and institutional investors, including existing shareholders and new investors.
This will result in the issue of more than 34.78 million new fully paid ordinary shares.
One for two option
Participants will also be issued one option for every two shares subscribed for in the placement exercisable at 18 cents and expiring 18 months from their date of issue.
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 strengthened balance sheet allows VRX to accelerate the advancement of the Arrowsmith North, Arrowsmith Central and Muchea silica sand projects.
This will include permitting and approvals, long lead capital items, detailed engineering work, hydro and resource drilling.
Proceeds after costs will also support working capital purposes.
VRX has recently completed a bankable feasibility study (BFS) for the world-class Muchea project, about 50 kilometres north of Perth.
This BFS for the project which has high-purity silica sand in-site, demonstrated “outstanding” financial metrics.
The company has completed a BFS for each of the two Arrowsmith projects, around 270 kilometres north of Perth, both of which showed “exceptional” financial metrics.
Maluish said, “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 falls within the company’s current placement capacity under Listing Rule 7.1 and is scheduled to settle on Tuesday, November 12, 2019.
Hartleys Limited acted as lead manager to the placement.