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Venturex sells project for $14m

Venturex sells Pilbara project for $14m

UPDATE 2.30pm: Shares in Venturex Resources closed up sharply after the company announced the sale of its Pilbara copper/zinc project for $14 million.

The company emerged from a trading halt this morning to announce it would sell the project to Orion Mine Finance Group.

The deal is subject to shareholder, regulatory and Foreign Investment Review Board approval as well as due diligence by Orion.

Venturex said its board believed the transaction represented the best option for unlocking shareholder value, following an extensive review of the finance options and search for strategic partners or investors to participate in the commercialisation of the project.

Major shareholders Regent Pacific (33.4 per cent) and Northern Star Resources (12.9 per cent) have indicated that they will vote in favour of the deal.

Venturex said it would return a significant portion of the sale proceeds to shareholders by way of a capital return.

The Orion Mine Finance Group is a mining-focused investment business with approximately $US1.86 billion under management.

It specialises in providing flexible capital investment solutions to junior mining companies in the base and precious metals sector.

Shares in Venturex were up 0.2 cents, or 40 per cent, to 0.7 cents at the close.