Bill Beament talks up VXR

Serious endorsement from Bill Beament at the NST AGM yesterday,  talking up VXR , Sulphur Springs and the conglomerate gold potential.
Venturex starting to gain market traction

VENTUREX Resources has taken advantage of its stellar share price run to raise A$4 million in a fully underwritten oversubscribed placement.

• Kristie Batten
• 17 Nov 2017
• 14:03
• News

The company issued 222 million shares at 1.8c per share in a placement joint managed and underwritten by Canaccord Genuity and Euroz Securities.

A number of new institutional and sophisticated investors participated in the placement.

The proceeds will be used to advance the Sulphur Springs copper-zinc project to a development decision.

The most recent figures revealed an operation costing $166 million that would produce 32,000 tonnes of zinc and 12,000t of copper per annum over 12 years.

The project contains around 740,000t of zinc and 230,000t of copper – and is likely to continue to grow.

A hole released earlier this week returned 20m at 12.05% zinc from 83m, including 4m at 20.8% zinc and 2.67%.
The company said it was of interest given it was the first time it had hit significant widths of high-grade zinc.

Base metals have had a good start to the 2018 financial year, and so has Venturex.

The stock hit a 52-week low of 0.4c on June 30 and this week hit a 52-week high of 2.6c.

Northern Star Resources, which holds 20.2% of Venturex, is a “happy shareholder”, according to executive chairman Bill Beament.

“[Sulphur Springs] is a very, very good copper and zinc project,” Beament told Northern Star’s annual general meeting yesterday.

Beament said Sulphur Springs’ planned production rate would be equivalent to 180,000 ounces of gold per annum at all-in sustaining costs of less than $1000 an ounce.

With a market capitalisation of less than $70 million, Beament challenged investors to find a gold developer that cheap.

Venturex has also benefited from the conglomerate gold story in the Pilbara.

Beament reiterated yesterday that Venturex had the most prospective – and vast – landholding in the Pilbara prospective for the type of mineralisation.

“[De Grey’s] Loudens Patch is only a postage stamp in comparison,” he said.

Last week Euroz initiated coverage on Venturex with a speculative buy rating and a 4c price target.

“Lack of quality emerging domestic base metal project positions Venturex well to capitalise on renewed interest in the sector,” analyst Andrew Clayton said.

“There are few projects in the hands of juniors that are development ready with potential valuation and multiples of its current market capitalisation.”