VHM Invites Shareholders to Back Goschen Project with $1M Share Purchase Plan
VHM Limited has launched a non-underwritten Share Purchase Plan offering eligible shareholders in Australia and New Zealand the chance to invest up to $30,000 at $0.35 per share, a significant discount to recent trading prices. The capital raised will support key development stages of the Goschen Project ahead of a final investment decision in early 2026.
- Non-underwritten SPP to raise approximately $1 million
- Offer price set at $0.35 per share, a 25.5% discount to last close
- Eligible shareholders can subscribe up to $30,000, adjusted for prior SPP participation
- Funds to finance early engineering, land acquisition, and operating costs for Goschen Project
- SPP opens 28 November and closes 12 December 2025, with shares issued mid-December
VHM Launches Share Purchase Plan to Engage Retail Investors
VHM Limited (ASX – VHM), a player in the rare earths and mineral sands sector, has opened a Share Purchase Plan (SPP) aimed at raising approximately $1 million from its eligible shareholders in Australia and New Zealand. The offer allows shareholders to purchase new shares at $0.35 each, matching the price set in a recent institutional placement that raised $10.3 million.
The SPP is non-underwritten, meaning VHM is not guaranteed to raise the full amount, and participation is capped at $30,000 per eligible shareholder, reduced by any previous SPP subscriptions earlier this year. This approach provides retail investors an opportunity to participate alongside institutional investors, albeit at a discounted price reflecting a 25.5% markdown from the last closing price of $0.47 on 20 November 2025.
Strategic Use of Funds to Advance Goschen Project
The capital raised through the SPP, combined with proceeds from the recent placement, will be directed towards advancing the Goschen Rare Earths and Mineral Sands Project. Specifically, funds will support early engineering works, long-lead procurement, finalisation of land acquisition, and operating costs related to securing offtake and financing arrangements. These activities are critical steps ahead of a planned final investment decision expected in the first half of 2026.
VHM’s board retains the discretion to increase the SPP amount if demand exceeds expectations, subject to regulatory compliance. However, given the non-underwritten nature, there is a risk that the full $1 million target may not be met, potentially impacting the project’s funding timeline.
Participation Details and Market Implications
The offer opened on 28 November 2025 and will close on 12 December 2025, with new shares expected to be issued on 19 December and commence trading on the ASX from 22 December. New shares issued under the SPP will rank equally with existing shares, ensuring no dilution of voting or dividend rights beyond the proportional increase in share capital.
Investors should note the risks inherent in the timing of the SPP. The share price may fluctuate between the offer date and the issue date, potentially trading below the discounted offer price. Additionally, the company may scale back applications if the SPP is oversubscribed, which could limit the number of shares allocated to individual investors.
VHM’s approach reflects a balanced capital raising strategy, combining institutional placement with retail shareholder participation, which can help maintain shareholder goodwill while securing necessary funds for project development.
Bottom Line?
VHM’s SPP offers shareholders a discounted entry point ahead of a pivotal phase for the Goschen Project, but market volatility and non-underwriting introduce execution risks.
Questions in the middle?
- Will VHM increase the SPP size if demand exceeds $1 million?
- How will the market react to the share dilution from the combined placement and SPP?
- What are the key milestones and risks ahead for the Goschen Project before the final investment decision?
