Bolstered by a $3 million sale of its Riley iron ore mine in Tasmania, Venture Minerals (ASX: VMS) now has $12 million in cash reserves as its new management rides the winds of change towards its Jupiter rare earths project in Western Australia’s Mid West region.
The company has today re-committed to using its burgeoning cash balance to aggressively target a maiden resource and resource upgrade at the flagship project by year’s end, after officially completing its sale of the mine.
After attracting interest from 45 bidders for its Tasmanian iron ore mine, Venture says it leant towards the successful bidder – private West Perth-based firm Gold Valley – because of that company’s expertise in managing small-scale iron ore projects.
Since stepping into her new role in May, managing director Philippa Leggat has overseen a whirlwind of activity. In less than two months, Leggat has reviewed all of Venture’s projects, facilitated the sale of the Riley iron ore mine, put its Tasmanian tin projects on the market and raised $7 million in fresh capital via a placement to existing shareholders and institutional heavyweights, Lion Selection Group and Northstar Impact Fund.
With the $12 million now in the coffers, the company is poised to make good on its promise to focus on its prized rare earths assets, most notably the Jupiter operation. Earlier this month, the company successfully acquired the remaining 30 per cent of the project from its joint venture (JV) partner Merchant Venture in exchange for $1.5 million worth of its shares.
The proceeds from the Riley sale have now been clearly earmarked to advance the Jupiter clay-hosted rare earths project, with the aim of delivering a maiden resource estimate by the end of the year. Discovered in under a year, the project involved drilling 22,000m across a 40 square-kilometre geophysical target, consistently yielding impressive, high-grade – and sometimes record-breaking – intercepts.
The strategic direction set by the board positions Jupiter at centre stage, recognising it as a standout opportunity to deliver value to shareholders. This strategy has been validated by institutional investors, with major investors securing cornerstone positions in our recent capital raising. Venture is well-funded to achieve our strategic objectives.
Venture Minerals Managing Director Philippa Leggat
In addition to the company’s strategic moves, it is also preparing for a rebranding and renaming to reflect its new direction. To underscore its commitment, management also recently arranged for the transfer of 35.2 million shares held by short-term financier Acuity Capital to Lion Selection Group at the placement issue price, raising an additional $700,000.
The Brothers project, which hosts Jupiter, is 80km south-west of the WA town of Mount Magnet and has been delivering a raft of impressive drill results. They include 2m at 26,958 parts per million total rare earth oxides (TREO), an exceptional 60m at 2014ppm and a record-breaking 48m at 3025ppm.
The company also reported a remarkable 58m at 2723ppm TREO, which it described as its “best hit yet”.
The Jupiter prospect is part of the larger Brothers project that spans 1165sq km. The project, formerly known as Iron Duke, continues to garner widespread attention with its promising results.
And it could be argued that with both its latest financial and geological developments, Venture is not just riding the winds of change, but steering them.
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