Vertex Minerals Secures AU$11 million Capital Raise to Boost Hill End Gold Project

Highlights:

• Vertex Minerals Limited (ASX: VTX) secured AU$11 million through a conditional share placement and convertible loan to accelerate underground mining at the Hill End Gold Project.
• The capital raise includes a conditional placement of AU$7.5 million, AU$3.5 million in convertible loans, and a Share Purchase Plan (SPP) to raise up to A$1 million, subject to shareholder approval.
• Funds will be directed towards underground development, exploration, and working capital, with mining targeted to commence by July 2025.

Vertex Minerals Advances Hill End Project with Capital Raise

Vertex Minerals Limited (ASX: VTX), an Australian-based gold mining and exploration company, has successfully secured firm commitments to raise approximately AU$11 million (before costs) through a conditional share placement and a convertible loan. The capital raise is designed to accelerate underground development and initiate mining activities at its high-grade Hill End Gold Project, located in the Eastern Lachlan Fold Belt of Central West NSW. The company also plans to conduct a Share Purchase Plan (SPP) to raise an additional AU$1 million, subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for mid-June 2025.

Capital Raise Structure and Allocation

The AU$11 million capital raise consists of three components:

• Conditional Placement: Vertex will issue 35.7 million fully paid ordinary shares to raise AU$7.5 million, pending shareholder approval at the upcoming EGM.
   
• Convertible Loans: The company secured AU$3.5 million in convertible loans, which will convert to ordinary shares at AU$0.21 each, five business days after shareholder approval. The loans carry an interest rate of 10% per annum, calculated monthly.
   
• Share Purchase Plan (SPP): An opportunity for existing shareholders to participate on the same terms as the placement, with a maximum raise of AU$1 million.

Strategic Use of Funds

At the time of writing, the capital raise aims to fund essential underground development, exploration, and working capital. Specifically, AU$0.75 million is allocated for remaining capital expenditures, AU$1 million for exploration in FY26, and up to AU$9.65 million for working capital and contingencies. The remaining AU$0.6 million will cover the costs associated with the capital raising process.

Future Outlook for Vertex Minerals

The successful capital raise is a strategic move to fast-track the Hill End Gold Project, positioning Vertex Minerals as a high-grade, high-margin gold producer. With underground mining targeted to begin by July 2025, the company is well-placed to capitalize on strong gold prices and its robust resource estimates.

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