Delayed Cornerstone Funding Poses Risk to Vertex Minerals’ Capital Raising Completion
Vertex Minerals has raised A$3.9 million through new share issuance, advancing its A$11 million capital raising to support the restart of its Hill End Gold Project amid strong gold prices.
- Raised A$3.9 million via issuance of 18.4 million new shares at A$0.21 each
- Total proceeds to date approximately A$7.5 million including A$3.5 million convertible loans
- Cornerstone investor Gleneden Nominees committed A$3.6 million, funds expected by mid-September
- Capital raising underpins near-term restart of high-grade Hill End Gold Project
- Company retains ability to place remaining A$3.6 million to other investors
Capital Raising Progress
Vertex Minerals Limited (ASX – VTX) has taken a significant step forward in its A$11 million capital raising initiative, announcing the receipt of A$3.9 million through the issuance of over 18 million new ordinary shares priced at A$0.21 each. This latest tranche, combined with an earlier A$3.5 million convertible loan, brings total funds raised to approximately A$7.5 million, marking a substantial boost to the company’s financial position.
Backing from Cornerstone Investor
The cornerstone investor, Gleneden Nominees Pty Ltd, which holds a 17% stake in Vertex Minerals, has committed to subscribing for A$3.6 million worth of shares. While the timing of these funds has been deferred to on or before 15 September 2025, this commitment underscores strong shareholder confidence in the company’s strategy and prospects. Vertex retains the flexibility to place the remaining A$3.6 million of the capital raising with other interested investors on the same terms.
Strategic Implications for Hill End Gold Project
The capital injection is earmarked to support the near-term restart of the Hill End Gold Project, a high-grade gold mining operation. This move comes at a time when the Australian gold price is historically strong, potentially enhancing the project’s economic viability. The fresh funds provide Vertex with the liquidity needed to advance operational activities and position the company to capitalise on favourable market conditions.
Looking Ahead
While the capital raising is progressing well, the full A$11 million target remains to be completed. The company’s ability to attract further investment will be critical in sustaining momentum. Investors will be watching closely for updates on the receipt of Gleneden’s funds and the operational restart timeline at Hill End.
Bottom Line?
Vertex Minerals’ latest capital raise fuels optimism for Hill End’s revival but hinges on timely completion of funding.
Questions in the middle?
- Will Gleneden Nominees deliver the remaining A$3.6 million by the September deadline?
- How soon can Vertex Minerals operationally restart the Hill End Gold Project with the new funds?
- What impact will the share issuance have on existing shareholders’ dilution and market sentiment?
