Placing Price per new Ordinary Share A$0.40 Number of Placing Shares issued 25,000,000 Total proceeds from the Placing (before expenses) A$10,000,000 Market capitalisation following the Placing at the Placing Price A$59 millionThe Placing Shares will be allotted and issued to applicants following receipt and clearance of their subscription monies pursuant to a placement authority to be approved by shareholders in a general meeting to be held on or about 31 January 2006, unless issued earlier under the Company's existing ASX LR 7.1 15% capacity.
As a result of the issue of the Placing Shares the Company has proposed a secondary listing on the Alternative Investment Market ("AIM") in London under the "fast track" AIM designated Market Rules.
Mirabaud Securities Limited shall act as broker and Beaumont Cornish Limited as nominated adviser (Nomad). During the last year London has shown significant institutional and private client investor support for mining companies with emerging production capability and strong growth potential. Listing of the Company's securities on AIM will provide further exposure to UK and European investors and enable a wider appreciation of the value of the Company's Simberi Oxide Gold Project located in the Tabar Islands of Papua New Guinea (60km north-north west of Lihir).
Additional benefits of a listing on AIM can be summarised as follows:
- The AIM market has internationally respected regulatory standards.
- The AIM market provides the opportunity to raise additional funds for further growth by creating an external market for the Company's shares.
- The AIM market provides the Company with exposure to the largest pool of global capital in the world.
- The AIM market provides the opportunity to widen the shareholder base through dual listing.
- The London market has a wealth of international investment expertise. The Company will use the funds from the issue of Placing Shares to:
- commence pre-development earthworks and infrastructure associated with the Simberi Oxide Deposit;
- provide funds for upgrading the sulphide resources on Simberi to reserve status;
- continue with exploration and evaluation of identified mineralised targets on Simberi, Tatau and Big Tabar Islands;
- support the corporate and administrative activities of the Company; and
- provide working capital and meet the costs of the issue.
The UK capital raising represents the foundation of the Company's equity requirements in relation to the Simberi Oxide Gold Project. Currently the Company is considering an offer of finance from RMB Resources Limited which the Directors intend to finalise early in the new year. With this capital secured the Company will be on track to achieve its aim of completing project commissioning towards the end of 2006.
Allied's strategic shareholders now include amongst others, RAB Special Situations Fund, Allianz Cornhill, Ward Ferry, Bank of Butterfield, Williams de Broe and Rathbones. Placement of Warrants (Options) to Mirabaud Securities Limited and Beaumont Cornish Limited: The Company will also seek shareholder approval for the placement of up to 1,000,000 Unlisted 2008 Warrants (Options) to the Company's London broker, Mirabaud Securities Limited in connection with the institutional placing and their engagement as UK broker to the Company. In addition the Company will seek shareholder approval for the placement of up to 100,000 Unlisted 2008 Warrants (Options) to Beaumont Cornish Limited which securities form part of their agreed fee structure in their role as Nomad in connection with the secondary listing on AIM. The Options will be exercisable at 50 cents on or before 31 December, 2008. A notice of meeting to seek shareholder approval to the Placing Shares and Warrants (Options) will be dispatched to shareholders shortly. The Company gives this notice pursuant to Section 708A(5)(e) of the Corporations Act. The shares are to be issued without disclosure to investors under Part 6D.2, in reliance on Section 708A(5) of the Corporations Act.
The Company, as at the date of this notice, has complied with:
(a) the provisions of Chapter 2M of the Corporations Act; and
(b) Section 674 of the Corporations Act.
There is no excluded information for the purposes of Sections 708A(7) and (8) of the Corporations Act.
Allied Gold Limited