DEVELOP GLOBAL LIMITED — Regulatory Filings 2016

Aug 28, 2016

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Venturex Raises $4.051m in Entitlement Issue and Placement Good response from shareholders with 69% participation level

Venturex Resources (ASX: VXR) is pleased to advise that it has raised $3.051 million through its Non-Renounceable Entitlement Issue (“Offer”) following a good response from shareholders.

Together with the recently completed $1 million Placement to Euroz Securities Limited clients ( see ASX Announcement 27 July 2016 ), this takes the total funds raised before costs to $4.051 million.

At the close of the Offer, Venturex had received valid applications from eligible Shareholders for 483,454,202 available shares equating to a 69.22% participation level.

69.22% participation level.
	Shares	Funds $
Maximum number of shares1available under the 2:5 Entitlement issue	698,477,838	$4.191 million
Number of shares1taken up by Shareholders (Entitlements)	321,510,414	$1.929 million
Number of additional shares1taken up by Shareholders (in excess of Entitlements)	161,943,788	$0.972 million
Number of shares1not taken by Shareholders (Shortfall Shares)	215,023,636	$1.290 million

1 Each Share has options attached to it as set out in the Offer.

25,000,000 of the shares not taken up have been issued to two of the Company’s Directors, Mr John Nitschke and Mr Anthony Kiernan as a consequence of the underwriting agreement. Both Mr Nitschke and Mr Kiernan received no fee in relation to this underwriting agreement.

The Company and Euroz, which is the lead manager of the Offer, are proceeding to place the remaining shortfall of 190,023,636 shares. The new shares and attached options are expected to be issued, and holding statements dispatched, on Wednesday, 31 August 2016.

As outlined in recent announcements, the funds raised will be used to underpin significant new exploration programs at the Company’s zinccopper projects in the Pilbara region of WA.

A new drilling program commences this week at the Whim Creek Project ( see ASX Announcement 26 August 2016 ) aimed at growing the existing zinc Resource and testing newly identified exploration targets.

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ASX Announcement
ASX Code: VXR
Released: 29 August 2016
For further details
John Nitschke
Managing Director
T: +61 8 6389 7400
admin@venturexresources.com
Board
Tony Kiernan
Chairman
John Nitschke
Managing Director
Anthony Reilly
Non-Executive Director
Darren Stralow
Non-Executive Director
Trevor Hart
Company Secretary
Contact Details
Registered Office
Level 2
91 Havelock Street
West Perth WA 6005
T: +61 8 6389 7400
F: +61 8 9463 7836
admin@venturexresources.com
www.venturexresources.com
ABN: 28 122 180 205
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JOHN NITSCHKE Managing Director

For further information, please contact:

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Mr John Nitschke, Managing Director or Mr Trevor Hart, Company Secretary 61 8 6389 7400

Media:

Mr Nicholas Read, Read Corporate 61 8 9388 1474 or email: info@readcorporate.com.au

About Venturex Resources Limited

Venturex Resources (ASX: VXR) is a rapidly growing Australian zinc company which is focused on the exploration and development of its two advanced zinc-copper projects located near Port Hedland in the premier Pilbara mining province of Western Australia. After recently completing a $5 million capital raising, Venturex has embarked on a major new drilling program aimed at further expanding its resource inventory, which comprises more than 900,000t of contained zinc and 320,000t of contained copper.

Its initial exploration focus is on extending the existing high-grade zinc, copper and lead resources at the Whim Creek Project, where it has identified a range of targets adjacent to the Salt Creek and Mons Cupri deposits. Drilling commenced in late August and will continue through until the end of the year, generating strong ongoing news-flow. The successful extension of the known Resources at Whim Creek will result in a project that is compelling at spot prices. The existing infrastructure at Whim Creek means that any such project could be producing zinc, copper and lead concentrates during the first half of calendar 2018.

Venturex is continuing to progress permitting and pre-development activities for its Sulphur Springs Project, one of the most significant undeveloped zinc deposits in Australia. On-going value engineering of the 2013 Feasibility Study has resulted in a potential low-risk copper-zinc project with attractive economics and a proposed low-CAPEX Stage 1 development based on a near-surface high grade supergene copper zone.

Venturex also receives an ongoing income stream from a profit share in an SX/EW heap leach operation recovering copper from the heap leach dumps at Whim Creek. Venturex received $780,000 in FY2016 from 990t of copper metal production. This cash flow covers the bulk of the Company’s overheads and is expected to continue for the next 2-3 years.

About Zinc

Zinc is a blue-grey metal which readily forms alloys with metals including copper, aluminium and magnesium. Zinc is primarily used for its corrosion resistance in galvanising which accounts for approximately half of global zinc consumption. Galvanised materials (commonly iron and steel) are used extensively in transport, construction and appliance manufacturing purposes. Metallic zinc is also used in dry cell batteries, die-casting, roof cladding and in the production of zinc oxide.

Zinc demand is dominated by China at 6.9Mt or 49%. Global consumption is forecast to grow at a CAGR of 2% over 2016-2020, with the strongest demand growth coming from China at 2% and also the US and India. Following recent mine closures and this increasing demand growth, the current zinc market is tight with declining global inventories and a supply deficit forecast in coming years. Zinc prices have responded accordingly rallying above the top of the global mine cost curve. The concentrate market also reflects this supply tightness, with smelters materially discounting treatment charges.

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