The Venturex Resources Ltd (ASX: VXR) share price is blasting off today. At the time of writing, it's up 233% to trade at 35 cents a share.
Venturex is a base metal mining company focused on developing its flagship Copper Zinc Sulphur Springs Project in Western Australia. The company is also pursuing other assets in the Pilbara region.
We investigate why the Venturex share price is soaring today.
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Venturex share price goes crazy after capital placement
This afternoon, Venturex announced a new funding package and capital placement spearheaded by prominent mining executive Bill Beament.
The company advised that Mr Beament will subscribe for $8.9 million in a placement at 8 cents a share with a one-for-two attached option exercisable at 13.5 cents per share. There's a two-year expiry date.
A $5.1 million allocation to institutional and professional investors is also included in the placement under the same conditions.
Existing Venturex shareholders are to receive a one-for-seven entitlement offer at 8 cents a share. The company advised that this will raise an additional $4.4 million.
Venturex will use the capital to position itself as a growing supplier of new-generation energy and technology materials.
New executives to assume key Venturex roles
As of 1 July 2021, Mr Beament will assume the role of executive director with Venturex. He is currently executive chair and a founder of Northern Star Resources Ltd (ASX: NST).
Mick McMullen will be appointed as an executive director immediately and transition to the position of non-executive director once Mr Beament assumes his role.
Mr McMullen joins Venturex following time spent as CEO and president of Detour Gold and Stillwater Mining Company.
Venturex executive director Anthony Reilly commented on the capital raise and new appointments, saying:
This growth strategy is a game-changer for Venturex. The combination of the funding provided to the company and the exceptional talents of those joining the board will position Venturex to become a near term producer.
Snapshot of the Venturex share price
The Venturex share price was trading at 9 cents just 6 months ago and has gained 288% in that period.
At today's price, the company has a market capitalisation of $40.68 million. There are currently 387.4 million shares outstanding.
