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 capital raising follows the recent grant of mining leases at the Muchea and Arrowsmith silica sand projects north of Perth in Western Australia.
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.
The placement is scheduled to settle on November 27, 2020, with Euroz Hartleys Limited acting as lead manager to the placement.