VBX raises $5m to expand Wuudagu bauxite project DFS as thyssenkrupp offtake deal ends

VBX is reshaping the development strategy for its Wuudagu bauxite project, in Western Australia raising AUD 7 million (USD 5 million) to advance its definitive feasibility study (DFS) while ending an indicative prepayment and offtake deal with thyssenkrupp Materials Trading Asia (TKMTA).

The Wuudagu bauxite DFS is now expected to be completed in the first quarter of 2027, later than the previously targeted second half of 2026. VBX said the additional time and funding will allow it to incorporate cost and schedule improvements identified by preferred contractors and potential project partners.

The funding package comprises AUD 4.5 million (USD 3.2 million) in firm commitments from new and existing strategic and institutional investors at AUD 0.64 (USD 0.46) per share, along with the conversion of AUD 2.5 million (USD 1.8 million) in unsecured loan notes held by managing director Ryan de Franck, subject to shareholder approval. The placement price represents a 15.5 per cent discount to the five-day volume-weighted average price.

Morgans Corporate and Petra Capital acted as joint lead managers.

Wuudagu bauxite study expands as VBX keeps funding options open

The AUD 7 million (USD 5 million) raise comes as VBX takes a broader look at the development of Wuudagu. The company has agreed with DFS manager Ausenco Services to expand the Wuudagu bauxite project study to include a higher mining rate, a borefield for water supply and the co-location of marine infrastructure at Guy Point.

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The expanded scope considers an 8 to 9 million tonne per annum throughput rate, although VBX stressed that this does not represent a new production target.

Alongside the expanded DFS, VBX has terminated the indicative term sheet for the USD 10 million TKMTA prepayment and offtake facility announced on July 1, 2026. The company said the decision preserves "full strategic and offtake optionality".

VBX has since received preliminary development funding proposals and is conducting a formal process to assess them. It aims to finalise a funding solution after completing the Wuudagu bauxite DFS.

"The additional funding allows us to fully assess a number of attractive opportunities to improve the delivery of Wuudagu as part of the DFS while the approvals and licences to construct and operate Wuudagu are obtained," said Ryan de Franck, managing director, VBX.

State and federal environmental approvals were secured in June 2026, leaving completion of the DFS as the next major milestone for the Wuudagu bauxite project.

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VBX changes technical leadership as bauxite project advances

VBX is also adjusting its board structure for the next phase of the Wuudagu bauxite project. Vivienne Powe will move from non-executive director to technical director for the DFS phase while remaining an executive director.

Powe joined the board in July 2022 and previously served as chief executive officer USA for Lynas Rare Earths Ltd.

Shareholders are expected to vote on the AUD 2.5 million (USD 1.8 million) loan-note conversion around November 20, 2026. The remaining AUD 2.5 million (USD 1.8 million) of loan notes now runs until December 31, 2027, with the interest rate increasing to 8.0 per cent from 4.5 per cent.

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