VRX Silica Limited (ASX: $VRX) has announced a pro-rata renounceable entitlement issue to raise up to $3,141,269. The offer includes one Share for every thirteen held by eligible shareholders at an issue price of $0.07 per Share, along with one free Attaching Option for every two Shares applied for and issued. Canaccord Genuity (Australia) Limited is partially underwriting the offer up to $2,600,000.
The company is focused on raising funds through the Entitlement Offer to achieve its stated objectives and maintain sufficient working capital. The Offers, including the Entitlement Offer and Sub-Underwriting Options Offers, aim to increase cash reserves, the number of shares, and options on issue. VRX Silica Limited (ASX: $VRX) emphasizes the importance of the capital structure, pro-forma balance sheet, and rights and liabilities attaching to securities detailed in the announcement.
VRX Silica Limited (ASX: $VRX) is conducting an Entitlement Offer to raise up to $3,141,269 before costs, with the purpose of applying the funds to achieve its stated objectives and maintain sufficient working capital. The company faces various risks associated with its mineral exploration and production operations, including challenges in obtaining insurance, retention of key personnel, shortage of skilled labor, lack of profitability to date, changes in mining and processing regulations, foreign exchange risk, native title and Aboriginal heritage issues, and future capital needs. The company emphasizes that an investment in the company is highly speculative and may not guarantee returns on capital, dividend payments, or increases in the market value of securities. Interested parties are encouraged to refer to the complete prospectus available on the company's website and through ASX announcements for specific financial information.