Venturex Resources gains momentum towards Sulphur Springs Copper-Zinc development

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13:35 14 Jan 2019

The company is currently engaged in an early contractor engagement strategy with regards to process plant design and implementation.

Discussions underway with a number of potential off-take partners

Venturex Resources Ltd (ASX:VXR) is making strong progress towards securing finance for the development of its flagship Sulphur Springs Copper-Zinc Project in Western Australia’s Pilbara region.

Following the completion of an updated Definitive Feasibility Study in October 2018, Venturex is rapidly progressing multiple work-streams which are expected to underpin its transition to the development phase at Sulphur Springs this year, positioning it to take advantage of the strong medium and long-term outlook for copper and zinc markets.

Financing

Following a roadshow to potential financiers in November – December 2018, Venturex has now received several positive Expressions of Interest (EOI’s) from domestic and international banks and other financiers in relation to project debt finance, with further EOI’s expected to be received during the course of January 2019.

In parallel, Venturex is advancing talks with a number of potential off-take counterparties who have expressed strong interest in the project’s copper and zinc concentrates.

The company has received several proposals from strong off-taker groups, all of which include the provision of potential off-take funding that would be complementary to the senior debt facilities currently being progressed.

Venturex has also commenced the technical due diligence of the Sulphur Springs Project which will form part of the bank financing.

Plant update

The company is currently engaged in an early contractor engagement strategy with regards to process plant design and implementation.

An official tender process will begin in February 2019 with a contract award for plant construction expected to follow.

Venturex managing director AJ Saverimutto said: “We’re out of the blocks early in 2019 and already building significant momentum in the debt financing process for the Sulphur Springs Project.

“We are very encouraged by the strong level of interest in providing project financing for Sulphur Springs and look forward to advancing the parallel streams of financing and off-take discussions in the coming weeks.”