Vertex Minerals Limited has negotiated convertible loan facilities totalling between A$2.8 million and A$4.2 million to advance operations at its Hill End Gold Project in New South Wales.

The conditional financing comprises up to A$3.6 million from unrelated sophisticated and professional investors and A$0.6 million from Executive Chairman Bruce McInnes. Vert Capital Pty Ltd acted as lead manager for the transaction.

Under the terms of the agreements, the loan principal and accrued compound interest at 10 percent per annum are scheduled to convert into ordinary shares at the lower of A$0.14 or the five-day volume-weighted average price preceding maturity. Lenders will also receive one free-attaching listed option for every three conversion shares issued.

Conversion of the debt and the issuance of the options remain strictly subject to shareholder approval at a meeting that must take place on or before 31 December 2026. If shareholders do not approve the arrangement, no shares or options will be issued, and Vertex Minerals will be required to repay the outstanding sum in cash within four months of the meeting.

The Hill End Gold Project has transitioned through exploration, development, and plant commissioning, with commercial gold production targeted for late 2026. The Reward Gold Mine at Hill End holds a Mineral Resource Estimate of 419,000 tonnes at 16.72 g/t gold for 225,200 ounces of gold.

Proceeds from the loan facilities will provide general working capital to support mainstream underground gold production and sales at the Reward Mine, alongside planned exploration below Reward at Fosters.

"After recent approval for 24/7 underground operations, and commissioning of the processing plant and the TOMRA ore sorter, the new funding will assist Vertex to further develop gold processing at Vertex's Hill End Gold Project, its Reward Mine. The Company's recently updated Mineral Resource Estimate and planned exploration below Reward at Fosters will direct working capital requirements for the new funds.

Underground diamond drilling is also planned to commence in the first quarter of 2027."
— Bruce McInnes, Executive Chairman

Underground diamond drilling is scheduled to commence at the Hill End Gold Project in the first quarter of 2027, backed by the newly secured capital.

Read the full announcement: New Convertible Loan Funding - A$4.2M