VHM Limited has launched a fully-underwritten A$10.3 million placement alongside a A$1 million Share Purchase Plan to advance its Goschen Rare Earths and Mineral Sands Project toward a Final Investment Decision in early 2026.
- Fully-underwritten A$10.3 million institutional placement at A$0.35 per share
- Non-underwritten Share Purchase Plan targeting up to A$1 million
- Funds to support early engineering, procurement, land acquisition for Goschen Project
- Indicative long-term funding support from EXIM (US$200m) and Export Finance Australia (A$75m)
- Final Investment Decision targeted for first half of 2026
Capital Raise to Accelerate Development
VHM Limited (ASX – VHM) has announced a significant capital raising initiative designed to fast-track the development of its Goschen Rare Earths and Mineral Sands Project in Victoria. The company is raising approximately A$10.3 million through a fully-underwritten institutional placement priced at A$0.35 per share, accompanied by a non-underwritten Share Purchase Plan (SPP) targeting up to A$1 million. This fresh injection of capital is earmarked for critical early-stage engineering, procurement activities, finalisation of land acquisition, and advancing the project toward a Final Investment Decision (FID) in the first half of 2026.
Strategic Backing Highlights Project Importance
The Goschen Project has recently secured all necessary mining licences and received strong indicative funding support, including a Letter of Interest from the Export-Import Bank of the United States (EXIM) for up to US$200 million and a Letter of Support from Export Finance Australia (EFA) for up to A$75 million. These endorsements underscore the project's strategic significance within global critical minerals supply chains, particularly given its rare earth and mineral sands assets that are vital for emerging technologies and clean energy applications.
Placement Details and Shareholder Participation
The placement involves issuing approximately 29.5 million new shares at a 25.5% discount to the last closing price, reflecting a pragmatic approach to secure committed funding swiftly. The SPP offers existing eligible shareholders in Australia and New Zealand the opportunity to participate at the same price, with a maximum subscription limit of A$30,000 per shareholder. While the placement is fully underwritten by Jarden Australia Pty Ltd, the SPP is not, which may influence the total capital raised through this channel.
Advancing Toward a Tier 1 Rare Earth Project
CEO Andrew King emphasised that this equity raising is a pivotal step in progressing the Goschen Project toward FID. The project is positioned as a Tier 1 asset with a compelling mineral assemblage, including both light and heavy rare earth elements such as Neodymium, Praseodymium, Dysprosium, and Terbium, alongside valuable heavy mineral concentrates like zircon and titanium. Its location in Victoria’s infrastructure-rich Loddon Mallee region offers logistical advantages, supporting a straightforward mining and processing approach.
Looking Ahead
With the capital raise underway and key approvals in place, VHM is focused on disciplined execution to finalise offtake and financing arrangements. The company’s ability to convert these promising foundations into a definitive investment decision will be closely watched by investors eager to see the project’s transition from development to production.
Bottom Line?
VHM’s successful capital raise sets the stage for a critical investment decision that could reshape Australia’s rare earths landscape.
Questions in the middle?
- Will the Share Purchase Plan reach its A$1 million target given it is not underwritten?
- How will VHM finalise offtake agreements and secure long-term financing ahead of FID?
- What impact will the discounted placement price have on existing shareholders’ sentiment?