Vertex Minerals Raises A$9M Convertible Loan with 10% Interest and Options Attached

Convertible Loan Funding Secured

Vertex Minerals Limited (ASX:VTX) has successfully negotiated a new convertible loan facility totalling A$9 million, led by Vert Capital Pty Ltd. The funding is structured in two tranches: an immediate A$6 million tranche and a subsequent A$3 million tranche expected to settle around 30 April 2026. This capital injection is designed to underpin the company’s ongoing development and production ramp-up at its flagship Reward Gold Mine in Hill End, New South Wales.

Conversion Terms and Shareholder Approval

The convertible loans will convert into fully paid ordinary shares at the lesser of A$0.14 or the company’s five-day volume weighted average price (VWAP) at the time of conversion, subject to shareholder approval. Additionally, investors will receive one attaching option for every three shares issued, exercisable at A$0.15 and expiring in July 2027. This structure offers investors an attractive entry point with potential upside through the options, while providing Vertex with flexible funding aligned with its share price performance.

Use of Funds and Operational Outlook

Vertex plans to deploy the proceeds primarily towards general working capital and accelerating the transition to mainstream underground gold production and sales at the Reward Gold Mine. The mine boasts a substantial resource estimate, with over 225,000 ounces of gold at a high grade of 16.7 grams per tonne, positioning Vertex well to capitalise on rising gold demand. The company has already commenced gold processing using a gravity gold plant and continues underground development to support production scale-up.

Fees and Incentives for Lead Manager

Vert Capital, acting as lead manager, will receive management and lead manager fees totaling 6% plus GST of the amount raised. Subject to shareholder approval, these fees may be partly paid in shares at the conversion price and options exercisable at A$0.15 and A$0.20, providing further alignment of interests between the company and its financiers. This arrangement underscores the confidence of sophisticated investors in Vertex’s growth prospects.

Looking Ahead

While the convertible loan facility offers a significant boost to Vertex’s financial position, the ultimate conversion depends on shareholder approval and market conditions at maturity. The company’s ability to deliver on its underground production targets at Reward Gold Mine will be critical to unlocking value for investors. Vertex’s Executive Chairman, Roger Jackson, highlighted the importance of this funding in supporting the company’s operational progress and thanked lending syndicates for their ongoing support.