VBX Launches $7M Funding Package for Wuudagu DFS Completion
Key Takeaways
- VBX has secured a $7m funding package comprising a $4.5m institutional placement at $0.64 per share (no shareholder approval required) and a proposed $2.5m loan note conversion subject to AGM approval.
- The Wuudagu DFS has been extended to Q1 2027 — a deliberate scope expansion to capture cost and schedule improvements identified through engagement with preferred contractors and potential project partners.
- DFS scope changes include an expanded 8 to 9 Mtpa mining and beneficiation throughput rate, a borefield water supply solution, and co-located marine infrastructure at Guy Point.
- Vivienne Powe, formerly Non-Executive Director, has transitioned to Technical Director, bringing over 35 years of project development experience including a recent role as CEO USA at Lynas Rare Earths.
- VBX terminated the indicative $10m TKMTA term sheet to retain full optionality across a formal development funding process, with preliminary operating, infrastructure, and offtake-linked proposals already received.
$7m funding package positions Wuudagu DFS for Q1 2027 completion
VBX Limited has secured a $7m funding package to maintain momentum at its Wuudagu bauxite project in northern Western Australia. The package comprises $4.5m in firm commitments via a placement to new and existing strategic and institutional investors (Transaction 1), plus a proposed $2.5m conversion of unsecured loan notes (Transaction 2, subject to shareholder approval at the upcoming AGM), with both tranches priced at $0.64 per share.
Ryan de Franck, Managing Director
“It is great to have received strong support and interest from new and existing strategic and institutional investors and to be well funded through an exciting period for the Company as we progress Wuudagu towards development.”
The $4.5m placement involves the issue of 7,031,252 new ordinary shares at $0.64 per share, completed under the Company’s available placement capacity pursuant to ASX Listing Rule 7.1 and not subject to shareholder approval. The $2.5m loan note conversion involves 3,906,250 new ordinary shares at the same price, with approval to be sought at the upcoming Annual General Meeting. The issue price represents a 15.5% discount to the 5-day VWAP of VBX shares. Morgans Corporate and Petra Capital acted as Joint Lead Managers.
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DFS extended to Q1 2027 to capture cost and schedule gains
The delivery of the Wuudagu Definitive Feasibility Study (DFS) has been extended to Q1 2027. VBX has been clear that this is a deliberate, opportunity-driven decision: engagement with preferred contractors and potential project partners has identified a significant number of attractive cost and schedule opportunities that the company intends to fully assess and incorporate as appropriate.
What’s changed in the DFS scope
VBX agreed with DFS Manager Ausenco (appointed September 2025) to modify the project scope in three key areas:
- Higher mining rate and product mass recovery
- Borefield as the preferred water supply solution
- Co-locating marine infrastructure at Guy Point
An expanded 8 to 9 Mtpa mining and beneficiation throughput rate is also being assessed. Importantly, this is not intended to infer an increased production target; the company has not yet completed the work necessary to report a new production target.
DFS team strengthened with Technical Director appointment
Vivienne Powe is transitioning from Non-Executive Director to Technical Director, whilst continuing on the Board as an Executive Director. Ms Powe brings over 35 years of project development, operational, and corporate development experience across the global mining, mining services, and oil and gas sectors. She most recently served as CEO USA at Lynas Rare Earths Ltd. Her transition to an executive role represents a deliberate capability lift to support DFS completion.
What is bauxite and why does the global aluminium supply gap matter?
Bauxite is the primary raw material for aluminium. The process runs in three steps: mined bauxite ore is refined into alumina, which is then smelted to extract aluminium metal for use across sectors including renewable energy, electric vehicles, energy transmission, and packaging.
Aluminium demand is forecast to grow by 30Mt, or 29%, by 2030. Chinese bauxite imports have grown at a compound annual growth rate of 25% over 20 years, with an additional 39 Mtpa required by 2035. Much of the current supply comes from Guinea in West Africa, a region carrying meaningful concentration risk through resource nationalism, sovereign risk, resource depletion, and environmental issues.
This is where Wuudagu’s strategic positioning becomes relevant for investors. The project offers a low-sovereign risk Australian jurisdiction, a low-silica product, short and efficient logistics, and expanding scale. For aluminium producers seeking to diversify away from Guinea supply dependence, a project with these attributes in northern Australia is precisely what the market needs. VBX is working to be in production when that demand gap bites hardest.
Formal development funding process underway as TKMTA term sheet terminated
VBX has received preliminary operating, infrastructure, and offtake-linked development funding proposals and is now initiating a formal process to assess them. The intention is to finalise a development funding solution following completion of the DFS. The inbound interest reflects Wuudagu’s appeal to groups seeking to secure access to its bauxite product rights, particularly given ongoing bauxite supply risks from Guinea.
Separately, the indicative term sheet announced 1 July 2026 for a $10m prepayment and offtake facility with thyssenkrupp Materials Trading Asia Pte Ltd (TKMTA), a subsidiary of tk accelis, has been terminated. The term sheet allowed either party to terminate by written notice if definitive binding documentation was not executed by 31 July 2026, and VBX elected to exercise that clause. This was a deliberate strategic choice to retain full optionality across the competitive funding process, not a deal falling through.
Ryan de Franck, Managing Director
“Importantly, we are able to do this while maintaining full strategic optionality to explore a number of interesting preliminary operating, infrastructure and offtake linked development funding proposals that we have received through a formal process which we are initiating.”
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Key terms and next milestones at a glance
With the funding package in place and DFS work progressing, investors have several clear milestones to monitor in the period ahead: DFS completion targeted for Q1 2027, the AGM shareholder vote on the loan note conversion, and the outcome of the formal development funding process.
| Milestone | Detail |
|---|---|
| Placement completion | $4.5m, 7,031,252 shares at $0.64 — no shareholder approval required |
| Loan note conversion | $2.5m, 3,906,250 shares at $0.64 — subject to AGM shareholder approval |
| Remaining loan notes | A$2.5m balance extended to 31 December 2027 at 8.0% per annum |
| DFS completion | Targeted Q1 2027 |
| Development funding | Formal process initiated; solution intended to be finalised post-DFS |
The combination of institutional backing, a strengthened technical team, scope improvements baked into the DFS, and inbound development funding interest positions VBX to move through this period with clear momentum. Each of the milestones above represents a decision point worth tracking as the company advances Wuudagu towards development.
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