VMS: Game Changer Events

Disclaimer: I'm just a VMS shareholder and hold between 1M to 3M shares. This is not financial advice, legal advice, trading advice, investing advice and actually not any advice. DYOR, invest what you can lose, blah blah blah. I'm just an eager investor, no more no less.

I believe there are 3 game changer events for VMS :

1. Wet Screen Plant Constructions / Debt Finance
2. Golden Grove North
3. South West with Chalice Gold

Wet Screen Plant Construction / Debt Finance

In summary, VMS commence the dry screen program and produced 2,000 tonnes but the decided to commence the wet screen production plant due to a superior margin.

Correct me if I'm wrong, but my understanding is that if you do the dry screen program then you can't use the same iron ore to convert it to the wet screen program so VMS have decided to construct the wet screen plant for superior margin. My understanding is it will take about 3 months for the Wet Screen Plant to be constructed so VMS have commenced the Wet Screen Plant recently.

My view is VMS would not commence Wet Screen Plant if it was not very confident it would obtain debt finance or at least have some sort of other avenue to obtain finance to complete the Wet Screen Plant.

You don't build a house with enough money to build everything except the roof unless you were confident you can obtain finance for the roof.

I went through the wording of recent VMS announcements and they no longer mention 'finance discussions' but rather VMS is working through advance finance proposals.

23 October 2020

Venture’s decision to commence Stage One of the Wet Screening Plant construction ensures that progress towards
wet screening continues while finance is finalised for subsequent stages. The Company continues to work through
several advanced financing proposals for completion of the Wet Screening Plant which will enable nameplate
production at Riley.

9 October 2020

Venture continues to consider a number ofadvancedfinancing proposals to deliver nameplate production at Riley.

The Board’s decision to commence Stage One of West Screening Plant construction ensures that progress towards wet Screening continueswhile finance is finalised forsubsequent stages.

The Company continues to work through severaladvancedfinancing proposals for completion of the Wet Screening Plant which will enable nameplate production at Riley.

25 September 2020–Annual Report 2020

6. Significant Changes in the State of Affairs

On 12 August 2020, a positive final investment decision was made to commence dry screening operations at the Riley Iron Ore Mine.

The focus is now onfinalising discussionson financing the wet screening plant whilst the dry screening process enables Venture to potentially realise early cash-flow from Riley.

16 September 2020– RIUResurgence

Focus is now onfinalising discussionson financing of the wet screening plant.

Upcoming milestones include:

Secure wet screening plant financing, First ore haulage & First ore shipment.

27 August 2020– DryScreening Operations commence at the Riley Iron Ore Mine

Venture continues to work towardsfinalising discussionson financing of the wet screening plant whilst the dry screening process enables Venture to potentially realise early cash-flow from Riley

13 August 2020– Investor’sPresentation

Focus is now onfinalising discussionson financing of the wet screening plant.

12 August 2020– Venturecommits to Dry Screening Operations at the Riley Iron Ore Mine

Focus is now onfinalising discussionson financing of the wet screening plant whilst the dry screening process enables Venture to potentially realise early cash-flow from Riley

1 August 2020– QuarterlyReport

Venture is now seeking tofinalise discussions on financing options including a debt facility to fund working capital to sustain mining operations and capital to complete construction of the wet screening plant at Riley. A decision on these funding initiatives and a Final Investment Decision (FID) will be made by the Board and advised to the market as soon as possible.

Golden Grove North Project / Vulcan

September 2020 Quarterly states:
This new strategic landholding (E59/1989) sits within a historic Goldfield that produced over 250,000 ounces of gold
up until 1957* and contains at least 30 historic gold mines (Refer Figure 10). The new acquisition is located adjacent to
Firefly Resources’ (ASX: FFR) Yalgoo Gold Project and only 8 kms south of the Melville Gold Deposit. The Company’s
Exploration Team is as a matter of priority, currently reviewing the gold potential of the tenement with results of that
work to be released shortly.

The Company currently has a ground EM crew on site to further pinpoint the VMS drill target at the Number One
prospect around the historic drill hole WRC054. Venture is still planning to drill this target after the EM survey is
completed whilst the RC rig is still on site during the maiden drill program at Golden Grove North.

My Comments
It would be strange that VMS state as an ASX listed company but as a VMS shareholder, I can say that FFR's share price moved from $0.100 to $0.235 when the ASX: FFR drilling results were released but moved to $0.175 due to a capital raise which obviously they need due to more drilling. This is a 75% to 130% (depending on when the point in time you want to compare) and I know because I wanted to jump on FFR but didn't. What VMS forgot to mention was that the land is also located near ASX:EMU which jumped from $0.031 to $0.061 (100% increase) since the drilling results on 28 September 2020 (a month ago).

Looking at the image below, ASX:FFR is Melville and ASX:EMU is Gnows Nest, VMS is above Gnows Nest, so you can try to work out whether VMS will have good drilling results which expect to be released soon based on the VMS September Quarterly.



Chalice Gold - South West ProjectThere is a JV with Chalice gold and effectively it's a free hit with 30% earned.

Chalice Gold are apparently commenced or will commence drilling results.



Any successful outcome from 3 above events will be a game changer for VMS.
I haven't even discussed about the Tin/Tungsten projects and the new projects stated in the September 2020 Quarterly.

The AGM is on 30 November 2020 and the beauty of lot of people hating VMS is VMS when they make announcements will never overcommit.

Go VMS!!!!