Venari Secures $6.1M for Nevada Lithium Project Targeting Q1 2027 Study
Venari Minerals secures $6.1 million to fast-track Red Mountain lithium project
Venari Minerals has completed an oversubscribed capital raising totalling $6.1 million before costs, comprising a $4.75 million two-tranche placement at $0.08 per share and a $1.35 million convertible note. The oversubscription signals investor demand despite challenging market conditions, with funds earmarked to deliver an upgraded Mineral Resource Estimate incorporating by-products, advanced metallurgical test work, and a Scoping Study targeted for Q1 2027.
The placement was priced at a 5.9% discount to the last traded price of $0.085 and a 22.1% discount to the 15-day volume weighted average price of $0.1028. The company-led capital raising, directed by Executive Chairman Tony Leibowitz, positions Venari to deliver a key de-risking milestone for the Red Mountain Lithium and Strategic Minerals Project in Nevada within approximately six months.
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What is a Scoping Study and why does it matter?
A Scoping Study represents the first economic assessment of a mining project’s viability, examining potential extraction methods, processing routes, and preliminary economics. For development-stage projects, this study serves as a critical checkpoint before advancing to more detailed assessments such as Pre-Feasibility Studies and Definitive Feasibility Studies.
In Venari’s case, the Scoping Study will incorporate recently identified by-products — strontium and magnesium — alongside lithium. This multi-commodity approach could enhance project economics by diversifying revenue streams beyond a single commodity.
Scoping Studies often serve as inflection points for junior miners. Positive results can attract larger partners, improve financing options, and re-rate valuations as the project transitions from exploration to development.
Placement structure and director participation
The $4.75 million placement will be completed across two tranches. Tranche 1 settles under existing capacity without requiring shareholder approval, with allotment expected around 3 August 2026. Tranche 2 requires shareholder approval at a general meeting expected around 19 September 2026.
Director participation demonstrates insider confidence, with three board members subscribing at the same price as external shareholders:
- Tony Leibowitz (Executive Chairman): $161,000 for 2,012,500 shares
- Vincent Fayad: $80,000 for 1,000,000 shares
- Matthew Healy: $20,000 for 250,000 shares
| Tranche | Shares Issued | Amount Raised |
|---|---|---|
| Tranche 1 | 22,095,000 | $1,767,600 |
| Tranche 2 | 37,280,000 | $2,982,400 |
| Total | 59,375,000 | $4,750,000 |
Directors investing alongside retail shareholders at the same price demonstrates alignment between management and external investors.
Convertible note and attaching options add flexibility
The $1.35 million convertible note provides funding without immediate dilution, with repayment structured through share issuances every six months at a fixed 8 cents per share. Each repayment represents a 3% increase in issued capital, subject to shareholder approval.
The note carries an 8% per annum interest rate, payable in cash or shares at the noteholder’s election. The loan becomes immediately repayable in the event of a takeover, sale of the Red Mountain Project, or similar corporate action.
Placement participants will receive one free attaching option for every ten shares subscribed, with an exercise price of 12 cents and a two-year term. The company intends to seek ASX quotation for the options once shareholder approval is obtained.
Key convertible note terms:
- Note amount: $1,350,000
- Term: 2 years
- Interest rate: 8% per annum
- Security: Unsecured
- Application fee: 1,687,500 options
The convertible structure provides funding flexibility whilst listed options could provide future capital if exercised above current trading levels.
Loyalty Options reward existing shareholders
Eligible shareholders on the register at 30 July 2026 will receive one Loyalty Option for every ten shares held, allowing existing investors to participate in potential upside without additional cash outlay. The Loyalty Options carry identical terms to placement options: 12 cent exercise price and two-year term.
Key dates for the Loyalty Option offer:
- Ex date: 29 July 2026
- Record date: 30 July 2026
- Loyalty Options allotment: 7 August 2026
The company intends to seek ASX quotation for both the placement options and Loyalty Options, with approval expected in late September 2026.
Executive Chairman’s perspective
Tony Leibowitz, Executive Chairman
“I am delighted that the Company has been able to complete this oversubscribed capital raising, notwithstanding current challenging market conditions. This outstanding result reflects the quality and value of the Red Mountain Lithium Project, the strong interest in lithium as well as the high-value by-products we have identified, strontium and magnesium, and the confidence investors have in our multi-pronged development strategy. With this funding in place, I look forward to seeing Red Mountain advance rapidly to the next level, with an updated MRE incorporating the by-products and delivery of a Scoping Study by early next year.”
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What comes next for Red Mountain
The funded work programme provides a clear pathway to the Q1 2027 Scoping Study, with several technical milestones to be completed in sequence:
- In-fill and extensional exploration drilling
- Addition of by-products (strontium, magnesium) to Mineral Resource Estimate
- Systematic metallurgical test-work programme
- Upgrade of high-grade northern sector from Inferred to Indicated resource category
- Scoping Study delivery targeted Q1 2027
The funded pathway provides visibility on upcoming newsflow and a clear milestone for investors to monitor. The inclusion of by-products in the updated Mineral Resource Estimate represents a shift towards a multi-commodity project strategy, potentially enhancing economics beyond a lithium-only development scenario.
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