Northern Star is set to lend $2 million to Venturex Resources to support the development of Venturex’s Sulphur Springs copper-zinc project in Western Australia.
The unsecured loan has a 12-month term and will be used to complete the definitive feasibility study (DFS) of the project.
Venturex managing director AJ Saverimutto said, “This is a strong show of support by our major shareholder and a significant vote of confidence in the quality of the Sulphur Springs project.
“Northern Star’s support through this bridging loan will allow us to push ahead at full speed with the completion and delivery of the DFS without having to dilute existing shareholders.”
Saverimutto said that it is not in Venturex shareholders’ best interests to raise equity capital in the current environment.
The loan is repayable in cash or Venturex shares at Northern Star’s discretion. Northern Star holds an interest in Venturex of just under 20 per cent.
The Sulphur Springs project is 144km south east of Port Hedland, and includes the Sulphur Springs and Kangaroo Caves deposits.