VHM Limited has opened a $2 million Share Purchase Plan at 25 cents per share, matching its recent placement price, to support the Goschen Project ahead of a final investment decision. Eligible shareholders in Australia and New Zealand can subscribe up to $30,000, with the offer closing on June 10.
- Non-underwritten Share Purchase Plan (SPP) to raise approximately $2 million
- Offer price set at $0.25 per share, a 19% discount to recent trading prices
- Eligible shareholders can subscribe up to $30,000, reduced by prior SPP participation
- Funds to support ongoing work and working capital for Goschen Project
- Shares to be issued and commence trading on June 13, 2025
VHM’s Strategic Capital Raise
VHM Limited (ASX: VHM) has announced a non-underwritten Share Purchase Plan (SPP) aimed at raising approximately $2 million by offering new shares at 25 cents each. This price aligns with the company’s recent institutional placement, reflecting a 19% discount to the five-day volume weighted average price prior to the offer. The SPP is open exclusively to eligible shareholders in Australia and New Zealand, allowing them to subscribe for up to $30,000 worth of shares, subject to reductions for any prior participation in VHM’s previous SPP from July 2024.
Supporting the Goschen Project
The capital raised through this SPP, together with proceeds from the recent $8.25 million placement, will underpin VHM’s ongoing work programs and provide essential working capital as the company advances towards a Final Investment Decision (FID) on its 100% owned Goschen Project, anticipated in the third quarter of calendar year 2025. This project represents a significant development opportunity for VHM, and the funding is intended to derisk early engineering and other preparatory activities.
Offer Details and Participation
The offer opened on May 19, 2025, and will close at 5:00pm AEST on June 10, 2025. New shares issued under the SPP will rank equally with existing shares, carrying the same voting and distribution rights. Participation is optional and non-renounceable, meaning shareholders cannot transfer their entitlement. The maximum subscription limit of $30,000 per eligible shareholder is consistent with ASIC regulations and is reduced by any amount subscribed under the previous SPP.
Market Context and Pricing
The SPP issue price of 25 cents represents a meaningful discount to the last closing price of 31 cents on May 8, 2025, and the five-day VWAP of approximately 30.9 cents. This discount is designed to incentivize shareholder participation while complying with ASX Listing Rules, ensuring the issue does not dilute existing shareholders beyond regulatory limits. The company cautions that share prices may fluctuate between the offer and issue dates, which is typical for speculative investments in the mining sector.
Next Steps for Shareholders and the Company
Eligible shareholders can apply for new shares via BPAY or electronic funds transfer, with detailed instructions provided in the SPP booklet and personalised application forms accessible online. VHM expects to issue the new shares and commence trading on June 13, 2025. The company reserves the right to scale back applications if the offer is oversubscribed. This capital raising marks a critical step in VHM’s strategy to advance the Goschen Project and strengthen its financial position ahead of key project milestones.
Bottom Line?
VHM’s SPP offers shareholders a timely chance to back the Goschen Project as the company approaches pivotal development decisions.
Questions in the middle?
- Will the SPP reach full subscription or require scale-back?
- How will the market respond to the dilution from the combined placement and SPP?
- What are the key milestones and risks ahead for the Goschen Project post-funding?