news is out vrx investment, page-7

Venturex Resources, with just $2 million cash to its name but plans to push ahead with redevelopment of the historic Whim Creek copper mine in the Pilbara, is in the throes of securing Northern Star Resources as a cornerstone investor.

Details of the deal, under which Northern Star is likely to take up a share placement to become Venturex's second-biggest investor behind Regent Pacific, are expected to be announced on Monday.

Venturex and Northern Star both placed their shares in a trading halt yesterday pending news of a "corporate transaction" and, in Venturex's case, "a significant capital raising".

It remains unclear how active Northern Star's involvement with Venturex will become.

Northern Star managing director Bill Beament, who has won plaudits for his team's work on its flagship Paulsens gold underground mine in the Pilbara, is a former Barminco executive. Barminco worked at Whim Creek under the mine's previous ownership.

Paulsens' profitability coupled with the proceeds of Northern Star's $45 million capital raising in February have left Mr Beament flush with cash to expand the company's portfolio.

A tie-up with Venturex would expose Northern Star to base metals for the first time, although it would continue Mr Beament's focus on the Pilbara, where his other gold project - Ashburton - is located.

Venturex is finalising a feasibility study into what it calls its Pilbara copper-zinc project, comprising Whim Creek south-west of Port Hedland and the Sulphur Springs copper-zinc deposit west off Marble Bar. It wants to consolidate both operations with a processing plant at Sulphur Springs capable of handling one million tonnes of ore a year and with sufficient resources for a seven-year operation.

The feasibility study is expected to be completed in September and Venturex will be hoping to move quickly into production, assuming it can raise $236 million. A mine go-ahead is also expected to see the reopening of the Whim Creek pub, which is owned by Venturex.
Venturex shares last traded at 3.8¢ to value the junior at $41.3 million. Northern Star, worth $267.5 million, last traded at 66.5¢.