Venturex shareholders overwhelmingly back Beament-led recap

Shareholders of Venturex Resources have overwhelmingly approved a recapitalisation and the election of several highly regarded directors (reports MiningNews).
11th June 2021
Resources Rising Stars

An extraordinary general meeting was held yesterday in Perth to vote on the recap, worth up to A$58 million, as announced in February, which was approved by roughly 99% of shareholders.

Northern Star Resources executive chairman Bill Beament will join the company as executive director on July 1 and will contribute $37.3 million of the recap funds.

Beament will subscribe for $8.9 million worth of 8c Venturex shares, which will give him an 18.1% stake in the company.

Along with a 3.1% stake held by Precision Opportunities Fund, of which Beament is a director, and 5% held by his associates, as well as the potential exercise of options, Beament and his associates will hold up to 38.87%.

Venturex will also place $5.1 million worth of shares to institutional and professional investors and launch a one-for-seven entitlement offer to raise $4.4 million, including a one-for-two 13.5c option, underwritten by Argonaut Securities.

Shareholders approved the grant of 140 million incentive options, exercisable at 15c, to Beament for part-time consulting fees between February and July.

The election of lawyer Michael Blakiston and former Detour Gold boss Mick McMullen to the board was overwhelmingly approved, as well as the issue of options to both.

McMullen, who has also subscribed for $461,017 worth of shares, has been an executive director since February, but will transition to non-executive director when Beament takes over.

Blakiston will become chairman, with Craig McGown stepping down as of yesterday.

"The approval of the resolutions at today's EGM marks the beginning of an exciting new era for Venturex, and the directors would like to take this opportunity to thank all shareholders for their support of the company to date and look forward to their continued involvement as it embarks on this next chapter of its growth and development," Venturex said.

Venturex owns the shovel-ready A$150 million Sulphur Springs copper-zinc project in the Pilbara.

Environmental approvals are advancing and early site works are underway.

Beament is expected to reveal more about the company's strategy in July, but has said he envisions Sulphur Springs as being a cornerstone asset of a future multibillion-dollar company.

"The recapitalisation is designed to reposition Venturex to become a rapidly growing supplier of new generation energy and technology metals," the company said yesterday.

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