Venture Minerals Ltd. intends to raise about A$5.7 million through a placement and a rights issue to fast-track the restart of the Riley iron ore mine in Tasmania, Australia.

Proceeds will be used to complete an updated feasibility study on Riley, which was suspended in 2014 due to delays caused by appeals against its approval. The Federal Court eventually gave a final go-ahead and dismissed the appeals.

In February, Venture said it was reviewing the economics for a restart amid an increase in iron ore prices. The company recently secured an off-take deal for the mine.

Under the placement, the company will issue 78,091,800 shares at 2 cents apiece for total proceeds of up to A$1.56 million. A one-for-two free attaching option exercisable at 3.5 cents apiece until June 18, 2020, is also included. Completion is expected May 28.

Venture will also launch a two-for-five accelerated nonrenounceable entitlement offer to raise up to A$4.16 million at 2 cents per share. Retail shareholders on record as of May 22 and registered in Australia or New Zealand can also take up their entitlement of new shares at the same offer price, with closing expected June 7.

All Venture directors intend to participate in the rights issue. The capital raising also received strong support from shareholders, the company said May 20.