Venari Completes $6.1M Placement and Advances Resource Drilling at Red Mountain

Battery-Grade Lithium Carbonate Confirms Red Mountain's Potential

Venari Minerals (ASX:VMS) has hit a key milestone at its Red Mountain Lithium Project in Nevada, producing battery-grade lithium carbonate with 99.5% purity. This result, achieved through established sulfuric acid leaching and crystallisation processes, validates the project’s capability to deliver a value-added lithium product with a low impurity profile. The lithium carbonate meets the industry’s minimum standard for battery-grade material, a crucial step for any lithium developer targeting the electric vehicle and energy storage markets.

Beyond lithium, metallurgical testing revealed promising by-products: magnesium sulfate (Epsomite) and strontium. Both are critical to US strategic interests, magnesium is a Department of Energy Critical Mineral, while strontium is designated a Strategic Material by the US Department of War due to its use in defence pyrotechnics. Venari’s approach includes extracting these by-products from processing residues and incorporating them into future Mineral Resource Estimates, potentially unlocking additional value streams and government support.

Permitting and Funding Set Stage for Resource Upgrade

The Bureau of Land Management has approved six new drill sites at Red Mountain, enabling Venari to pursue in-fill drilling focused on the high-grade northern zone. This drilling aims to upgrade the Mineral Resource Estimate from the Inferred to the more robust Indicated category under the JORC Code, underpinning a scoping study targeted for completion in Q1 2027. The company is actively engaging drilling contractors to commence work promptly.

To fund this accelerated program, Venari completed the first tranche of a $6.1 million capital raising, issuing 22.1 million shares at $0.08 each and receiving $1.35 million via a convertible note. The second tranche, expected to raise an additional $3 million including director participation, awaits shareholder approval around mid-September. These funds will support drilling, metallurgical test-work, and the scoping study, marking a clear pivot toward advancing Red Mountain’s development.

Portfolio Simplification with Georgina Basin Sale

In a strategic move to concentrate on its flagship lithium asset, Venari sold its 100% interest in the Georgina Basin IOCG Project in the Northern Territory to UK-listed Alien Minerals. The deal, completed in mid-July, includes £100,000 cash and shares in Alien Minerals valued at approximately A$386,000, plus expected R&D tax refunds. Venari also secured a 12-month technical services agreement with Alien Minerals, providing ongoing income. This divestment streamlines Venari’s asset base and reduces holding costs, allowing it to focus capital and management resources on Red Mountain.

Other Assets and Corporate Overview

Venari’s other projects, including the Needles Gold Project in Nevada and the Governor Broome Mineral Sands Project in Western Australia, saw no activity during the quarter. The company continues to explore value realisation options for Governor Broome, including potential joint ventures or sales.

Cash flow statements reveal operating and exploration expenditures consistent with development-stage mining companies, with net cash outflows offset by the recent capital raising. Director remuneration totaled $202,250 for the quarter, reflecting ongoing executive and non-executive fees.

Venari’s Red Mountain project benefits from excellent infrastructure, proximity to major roads, high-voltage power lines, and secured water rights, supporting its development plans. The company’s exploration plan of operations remains under review, with an expected BLM approval to allow expanded drilling beyond current disturbance limits.