Venari Minerals has raised AU$6.1 million to accelerate development at its Red Mountain lithium and critical metals project in Nevada, US.
The capital raising comprises a AU$4.75 million two-tranche share placement alongside a $1.35 million convertible note issued to a high-net-worth investor.
Under the placement terms, Venari will issue 59.38 million fully paid ordinary shares at 8 cents per share. Subscribers will receive one free attaching option for every 10 placement shares, exercisable at 12 cents with a two-year expiry.
Venari plans to seek ASX quotation for these options alongside a planned 1-for-10 Loyalty Option offer for existing eligible shareholders.
Venari Executive Chairman Tony Leibowitz said: “I am delighted that the company has been able to complete this oversubscribed capital raising, notwithstanding current challenging market conditions.
“This outstanding result reflects the quality and value of the Red Mountain Lithium Project, the strong interest in lithium as well as the high-value by-products we have identified, strontium and magnesium, and the confidence investors have in our multi-pronged development strategy.”
The proceeds will fund an updated mineral resource estimate (MRE) that incorporates strontium and magnesium by-products, in-fill and extensional drilling, systematic metallurgical testing, and the completion of a project scoping study targeted for the March quarter of 2027.
Settlement of the first tranche is expected by July 31, while the second tranche, which includes participation from company directors, remains subject to shareholder approval at a general meeting scheduled for mid-September.