Verity’s $3M Placement Fuels Monument Gold Push Amid Licence Application
Verity Resources has successfully raised $3 million through a two-tranche placement to accelerate drilling and resource upgrades at its Monument Gold Project amid strong gold market conditions.
- Completed $3 million equity raising via two-tranche placement
- 125 million new shares issued at $0.024 with free attaching options
- Funds to accelerate drilling and resource upgrades at 154koz Monument Gold Project
- Director participation of $250,000 subject to shareholder approval
- Monument Project located near Genesis Minerals’ 3.3Moz Laverton Gold Project
Capital Raise to Support Growth
Verity Resources Limited (ASX, VRL) has successfully completed a $3 million equity raising through a two-tranche placement aimed at accelerating exploration and resource development at its flagship Monument Gold Project in Western Australia. The placement, priced at $0.024 per share, attracted strong demand predominantly from existing sophisticated and institutional investors, reflecting confidence in Verity’s strategic direction and asset potential.
The placement involves issuing approximately 125 million new fully paid ordinary shares, with one free attaching option for every three shares subscribed. These options are exercisable at $0.048 and expire two years from the issue date, pending shareholder approval. Directors have also committed to subscribing for $250,000, signaling alignment with shareholder interests.
Monument Gold Project, Unlocking Potential
The Monument Gold Project, located in the highly prospective Laverton Gold District of Western Australia, currently hosts a JORC-compliant inferred resource of 154,000 ounces of gold at 1.4 grams per tonne. The project sits adjacent to Genesis Minerals’ 3.3 million ounce Mt Morgan Gold Project, benefiting from proximity to established infrastructure including a 3.1 million tonnes per annum processing mill.
Verity plans to deploy the raised funds to fast-track a 6,500-metre drilling program focused on upgrading a targeted portion of the inferred resource to indicated confidence, a critical step towards advancing the project’s mining licence application. The drilling will also test over 60 additional high-priority targets along a 20-kilometre strike of largely untested banded iron formation, which shares geological characteristics with the nearby Westralia gold deposit.
Strategic Outlook and Broader Portfolio
Beyond the Monument Gold Project, Verity is awaiting results from a rare earth elements (REE) auger drill program in Minas Gerais, Brazil, which could add further value to its critical metals portfolio. The company also holds significant base and precious metals projects in Botswana, including a maiden inferred resource for nickel and copper, positioning it well within multiple commodity markets.
Verity’s leadership emphasizes the strong market environment for gold and the company’s readiness to capitalize on exploration upside. With drilling phases underway and metallurgical studies planned, the company is poised for a period of active development and value creation.
Market and Investor Implications
The successful placement at a modest discount to recent trading prices reflects investor appetite for Verity’s growth story amid record gold prices. The inclusion of attaching options provides potential upside for shareholders, while the director participation underscores management’s confidence. As the company advances its resource upgrade and mining licence application, market watchers will be keenly observing forthcoming drilling results and strategic developments.
Bottom Line?
Verity’s $3 million raise sets the stage for a pivotal phase of resource growth and exploration at Monument Gold, with market eyes on upcoming drilling results.
Questions in the middle?
- Will the resource upgrade successfully convert inferred ounces to indicated status as planned?
- How will the results from the rare earth element program in Brazil impact Verity’s portfolio value?
- What timeline and hurdles remain for the mining licence application at Monument Gold?
