Vertex Minerals (ASX:VTX) is set to raise AU$1.1 million via the placement of 6.9 million shares priced at AU$0.16 apiece to advance the Reward gold mine in New South Wales, according to a Wednesday filing with the Australian Securities Exchange.

Placement proceeds will be boosted by a AU$976,000 loan, which will be converted into shares at AU$0.16 apiece, subject to shareholder approval, the filing said.

The proceeds will fund the acquisition of a laser ore sorter and an underground drill rig at the project, and working capital, according to the company.

CPS Capital Group was the lead manager for the capital raising.

Vertex Minerals shares fell 11% in recent trade.

Price (AUD): $0.17, Change: $-0.020, Percent Change: -10.53%