Victory West secures $1.5m of funds to develop Malala molybdenum project

Australian mining firm Victory West Moly Ltd (VWM) announced Thursday that it has closed the placement of 10,000,000 ordinary shares and 5,000,000 listed options to sophisticated and institutional investors to raise $1.5 million which was oversubscribed.

These additional funds will strengthen the company?s cash position as it continues exploration at its Malala Molybdenum project in Central Sulawesi, the company said in a statement.

The granting of the above mentioned options are subject to shareholder approval at the company?s next General Shareholders' Meeting to be convened shortly.

Victory West Moly Limited is a molybdenum-focussed exploration development company with its flagship Malala Molybdenum Project (23,747 Ha), located approximately 12 km from a deep water harbour at Malala Bay.

VWM is currently focussed on delineating the size and grade of the Anomaly B prospect through a series of exploration programs including drilling, trenching, geophysics and geochemistiy. VWM is yet to define a JORC resources however, it is in the process of verifying an initial minimum Exploration Target at Anomaly B of 105-115Mt @ 660-900ppm Mo based on previous work by Rio Tinto, Santos and the company. VWM expects to build on this target over time.

Recent exploration suggests Anomaly B could be just one of a series of molybdenum-bearing prospects within the district, with regional reconnaissance generating a number of high priority targets, including a large target area within the PT Promistis concession.

In August last year, VWM obtained the conversion of its mining contract from KP (Mining Authoriziation) to IUP (Mining Permit) for the Malala Molybdenum project. (denny)