Capital Placement and Share Purchase Plan
Canberra, Oct 20, 2016 AEST (ABN Newswire) - Alt Resources Limited (
ASX:ARS) ("Alt" or the "Company") is pleased to announce that it is undertaking a capital raising to raise $1.482 million before issue costs. The share issue comprises a Placement of $1,082,000 to sophisticated and professional investors, and an SPP offering to raise up to $400,000 to existing shareholders.
Placement
Alt has completed a direct placement of $1,082,000 to sophisticated and professional investors with continued support from the Company drilling contractors. The Placement of 13,524,000 fully paid ordinary shares (New Shares) has been conducted at a price of 8 cents per New Share. The Placement price represents an 18.92% discount to the 15 day volume weighted average price for Alts shares of $0.0987.
The Placement was made to investors qualifying under Section 708 of the Corporations Act and the Company has used its existing issue capacity under Listing Rules 7.1 and 7.1A to complete the issue.
Disclosure under ASX Listing Rule 7.1 and 7.1A
In accordance with ASX Listing Rules 7.1A. the Company makes the following disclosures in respect of the Placement:
1. (a) The Company issued a total of 13,524,000 fully paid ordinary shares of which 10,620,972 shares were issued under Listing Rule 7.1 under the Company's 15% placement capacity under Listing Rule 7.1.
2. (b) The Company has further issued 2,903,026 fully paid ordinary shares under the 10% placement capacity using Listing Rule 7.1A The securities issued under Listing Rule 7.1A resulted in the following dilution to existing holders of ordinary securities:
- Number of fully paid ordinary shares on issue prior to this issue of securities was 73,745,383 millions shares Number of fully paid ordinary shares on issue following this issue of securities under LR7.1 and LR7.1A is 87,269,383 million shares
- Percentage of voting dilution following this issue is 18.3% after the placement.
(c) No underwriting arrangements were entered into in connection with this Placement.
(d) A fee of $36,000 was paid to a broker who introduced investors to participate in the Placement.
Secondary Trading Notice Pursuant To Section 708(8) and (11) of the Corporations Act 2001
The Company advises that the Securities issued pursuant to the Placement without issued disclosure to investors under Part 6D.2 of the Act. The Company, as at the date of this notice, has complied with:
1. a) the provisions of Chapter 2M of the Act as they apply to the Company; and
2. b) section 674 of the Act.
Share Purchase Plan (SPP)
Alt is also pleased to offer existing shareholders the opportunity to acquire shares at the same price as the Placement.
Under the SPP, shareholders on the company's register as at close of business on Wednesday 19 October 2016 (the "Record Date") will be able to purchase up to a maximum of $15,000 worth of shares.
The key terms of the SPP are:
- Shareholders will be able to acquire shares in 5 parcel sizes ranging from $1000 up to $15,000.
- The SPP will close on Thursday 17 November 2016 13.
- A maximum of 5 million shares will be issued under the SPP.
- The right to participate in the SPP is optional and is non-renounceable (i.e. it cannot be transferred to another person).
- The SPP is not underwritten.
Funds raised from the SPP and the Placement will be spent to undertake exploration drilling at the Company's NSW and WA projects including:
a) Undertake RC drilling programs at the Cottee gold project located at Leinster in WA
b) Undertake diamond drilling programs at the flagship Paupong IRG project in NSW
c) Undertake first pass RC drilling at the Fiery Creek gold project in NSW
d) Provide working capital for the Company's current operations
About Aurenne Alt Resources Pty Ltd
Aurenne Alt Resources Pty Ltd is an Australian based mineral exploration company that aims to become a gold producer by exploiting historical and new gold prospects across quality assets and to build value for shareholders.
| ||
|
