Vertex Minerals (ASX:VTX) has announced a $12 million capital raise to expedite underground development and commence mining at its Hill End Gold Project in New South Wales. The funding initiative involves a placement of 35.7 million shares to raise $7.5 million, managed by Blue Ocean Equities and CPS Capital Group. A share purchase plan aims to secure an additional $1 million, while a convertible loan issuance seeks $3.5 million, converting into shares at the placement price with a 10% annual interest rate.
The capital injection is intended to facilitate the commencement of mining operations by July 2025, positioning Vertex as a high-margin gold producer in Australia. According to Executive Chairman Roger Jackson, the existing processing circuit is already operating on historical stockpiles. The Hill End Project boasts a resource of 419,000 tonnes at 16.7g/t gold, totaling 225,200 ounces of gold. A Prefeasibility Study from February 2024 projects production up to 30,000 ounces of gold at an all-in sustaining cost below $2,000 per ounce.
Jackson emphasized the potential for significant cash generation given that previous owners invested over $25 million in underground development, an ore sorter, and a processing plant. The company believes Vertex is positioned to capitalize on its high-grade gold operation. With the current gold price at $5,095.85 per ounce (as of 11am AEDT), the project anticipates attractive margins.
