Venture Minerals (VMS) plans to invest $10mn to fully pay for developments at its Riley iron ore mine wet screening plant in Tasmania, Australia.
The placement, which was approved by the company’s investors, will allow VMS to move into the final stages of the plant’s construction and commissioning, as it evolves to a producer from an explorer, the company said in a news release. The first iron ore shipment from VMS is anticipated by Q2 2021.
The first stage of the site’s construction is complete, including run of mine, concrete foundations, and site works, VMS indicated. The condensed mine life at Riley along with a speedy production agenda allows the company to benefit from the current, historic high iron ore price levels and achieve substantial capital for VMS in the short-term.
The company noted iron ore prices have been elevated from 2020 into this year, along with continued positive sentiment as strong demand was initiated when governmental infrastructure payments were disbursed in China along with continued supply issues in Brazil.
Part of the investment will also be used at VMS’s Golden Grove North zinc-copper project, to extend drill intersections up to 7pc for zinc and 1.3pc for copper. Additionally, funds will be used at the fully owned Kulin Project, where drilling was recently commenced for its 3,000-meter minimum, drilling program in Western Australia.