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VHM - VHM Limited

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VHM Limited is an Australian rare earth mineral and mineral sands development company with a focus on tenements within the Loddon Mallee Region of Victoria.

From 2014 to 2022 the Company progressively acquired, through pegging, over 6,336km2 of near-contiguous tenements making it one of Victoria's largest mineral sands claim holders. Its current holding (following the VPM Demerger) is 2,860km2.

The Company undertook its first significant seed capital raising in September 2016 to fund initial historical drill data analysis obtained by previous tenement holders to prepare the 2017 Mineral Resource estimate in EL5520 (which is now RL006806).

From 2018 to 2022, a number of wholly owned subsidiaries were incorporated for the purpose of acquiring freehold land on which the Goschen Project is situated. Those land acquisition contracts are binding, but yet to settle (with long dated and flexible settlement arrangements).

Since May 2018, the Company has conducted a number of seed capital raisings to fund exploration activity at the Goschen Project and toward progressing an assessment in relation to the Proposed Operation (Phase 1) and consideration of the merits of the Hydromet Circuit (Phase 1A), which would provide further downstream processing opportunities. The Company has now spent approximately $45 million in aggregate on the Goschen Project and contiguous licences.

It is anticipated that VHM will list on the ASX during January 2023.

 
Listing date09 January 2023 ; 10:30 AM AEDT ##
Company contact detailshttps://www.vhmltd.com.au/
Ph: 0407 421 185
Principal ActivitiesMining
GICS industryTBA
Issue PriceAUD 1.35
Issue TypeOrdinary Fully Paid Shares
Security codeVHM
Capital to be Raised$30,000,000
Expected close date16-Dec-22
UnderwriterNot underwritten. Canaccord Genuity (Aust.) Ltd (Lead Manager)
 
Unimpressive first day on the bourse.
Rare earths development company. What does this mean when they haven't get a RE resource of their own.
Good afternoon peter2
Yes, it certainly wasn't too flash... The VHM IPO raised approximately $30 million in an oversubscribed IPO, offering new shares for $1.35 apiece. Today (09/01/23) the SP closed at $1.14. There was some hoo haaa prior to listing today. Will be some bitterly disappointed shareholders.

Interestingly, Mineral Resources managing director Chris Ellison's, through his Ellison WA business, invested $3.7m for 18 million shares, or a 9.14 % stake, becoming VHM's biggest individual shareholder. All nice and tidy, big draw card for investors, but Ellison can afford to wait and take the risk to pick up the big, anticipated bucks, somewhat later on down the track. For mine, the Goschen Rare Earths and Mineral Sands Project plans to begin production early part of 2025.. Long time between drinkies... certainly long time for coin to be tied up with prospect of further dilution of shares on the cards (assumption).

Also found interesting that some time back VHM announced that it had struck a MoU to sell most of its future product to China’s biggest importer of rare earths concentrate, Shenghe. This company was the one that bought a good chunk of PEK and committed to buying their REE too!! The dream of a safe reliable market. ha ha ha ha Could well be the case, but plenty of water to flow underneath the bridge well before that happens.

rcw1 will watch further, but at the moment, all in all, VHM is not for rcw1, much better cheaper options out there in Disney Land ha ha ha ha ha

EDIT: Not holding.

Have a very nice evening peter2.

Kind regards
rcw1




 
Maybe too much competition and easier choices.

Victorian rare earth play VHM falls 15 per cent at its ASX debut


Chris Ellison-backed VHM dived on its first day of trading on the ASX, closing down 15.5 per cent from its $1.35-a-share IPO as the market sold down the rare earth and mineral sands play.

Mr Ellison took a paper loss of $3.8m on the company’s first day of trade, as VHM dropped 21c to close at $1.14. The MinRes founder and managing director is VHM’s biggest shareholder with about 18 million shares, on a register that includes ByrneCut executive chairman Steve Coughlan.

VHM’s Goschen rare earths project sits in north western Victorian, about 150km from the Wimmera project owned by mineral sands major Iluka Resources – which also holds tenements near those owned by VHM, and conducted much of the drilling on VHM’s own project.

The company raised $30m in its IPO and says it plans to spend about $4.7m on metallurgical test work on the deposit, as well as advancing engineering and feasibility studies, and buying some of the land on which it tenements sits.

VHM estimates it will spend at least $7.7m advancing its projects through the approval processes.

Since its founding in 2014, the company says it has spent about $45m exploring its Goschen deposit, building out a mining reserve of 199 million tonnes at an average grade of 3.7 per cent heavy minerals.

Although VHM pitched itself to the market as a rare earth company, its deposit – like Iluka’s Wimmera project in Victoria – is also a mineral sands play. The Goschen reserve grade is 21.7 per cent zircon and 9.7 per cent rutile, and the rare earth metals contained in a monazite hosting has a grading of 3.5 per cent monazite.

“VHM presents a compelling opportunity with a globally significant project,” said its managing director, Graham Howard.

Canaccord Genuity acted as lead manager of the float, alongside co-manager Reach Markets and HWL Ebsworth.

NICK EVANS RESOURCE WRITER
 
Good afternoon peter2
Yes, it certainly wasn't too flash... The VHM IPO raised approximately $30 million in an oversubscribed IPO, offering new shares for $1.35 apiece. Today (09/01/23) the SP closed at $1.14. There was some hoo haaa prior to listing today. Will be some bitterly disappointed shareholders.

Interestingly, Mineral Resources managing director Chris Ellison's, through his Ellison WA business, invested $3.7m for 18 million shares, or a 9.14 % stake, becoming VHM's biggest individual shareholder. All nice and tidy, big draw card for investors, but Ellison can afford to wait and take the risk to pick up the big, anticipated bucks, somewhat later on down the track. For mine, the Goschen Rare Earths and Mineral Sands Project plans to begin production early part of 2025.. Long time between drinkies... certainly long time for coin to be tied up with prospect of further dilution of shares on the cards (assumption).

Also found interesting that some time back VHM announced that it had struck a MoU to sell most of its future product to China’s biggest importer of rare earths concentrate, Shenghe. This company was the one that bought a good chunk of PEK and committed to buying their REE too!! The dream of a safe reliable market. ha ha ha ha Could well be the case, but plenty of water to flow underneath the bridge well before that happens.

rcw1 will watch further, but at the moment, all in all, VHM is not for rcw1, much better cheaper options out there in Disney Land ha ha ha ha ha

EDIT: Not holding.

Have a very nice evening peter2.

Kind regards
rcw1
Good afternoon

Market Cap A$96.57 Million;
Cash on Hand as reported 30 September 2023 A$13.9 Million;
Shares Issued: 203 101 902;
Options !! : 8 504 334;

Backed by Chris Ellison;
1704607885904.png


Current projects on the go:
1) Goschen;
2) Orion;
3) Cannie; &
4) Nowie


1704608150625.png



It wasn't so long ago, that VHM announced that it had struck a memorandum of understanding (MOU) to sell most of its future product to China’s biggest importer of rare earths concentrate, Shenghe ...

Goschen production is 2 years away... and this MOU with Shenghe Resources has not progressed into any formal contract as yet. Last report on 3 October 2023, VHM had said with respect to this matter, “continue detailed contract negotiations and accordingly, as contemplated in the original MOU, have agreed to extend the date the formal agreement is to be finalised” to December 31.
To rcw1 knowledge no further announcement has been made.

VHM, plans to build a rare earth mine at the Goschen deposit near Swan Hill in Victoria, and has been speaking with commercial lenders along with the Australian government for funding, according to an AFR article dated 3 October 2023. Not quite sure how that will go, with Australia and other Western nations attempting to develop non-Chinese supply chains for rare earths. Anything is possible, way too hard for rcw1 to fathom, but any way is what it is... VHM gunna need some serious coin soon...


1704606035084.png


1704606460342.png


Not holding
Have a very nice week.

Kind regards
rcw1
 

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