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Artemis Resources Limited — Capital/Financing Update 2013
Jul 23, 2013
10429_rns_2013-07-23_552d47ee-5904-4e12-b3af-a95868dbf1ed.pdf
Capital/Financing Update
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24 July 2013
ASX ANNOUNCEMENT
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RIGHTS ISSUE TO RAISE UP TO $1.2M
Highlights
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Rights Issue to raise circa $1.2 million to fund Eastern Hills antimony project drilling
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Priced at 40% discount to 5 day VWAP at $0.006 per share plus options
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Conditional and partial underwriting of the Rights Issue of up to $730,000 has been confirmed, inclusive of the participation by key shareholder and Directors
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Drilling planned to upgrade Eastern Hills antimony exploration target to a maiden JORC compliant resource and test extensions to mineralisation
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China’s domination of global antimony production has led to increased demand for non-Chinese antimony sources
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Antimony prices remain firm around US$10,000 per tonne compared to US$7,000 per tonne for copper²
Artemis Resources Limited (ASX: ARV) (“the Company”, “Artemis”) is pleased to announce a proposed pro rata renounceable rights issue (“Rights Issue”) of up to 196,166,158 new shares on the basis of two (2) new shares for every five (5) shares held by eligible shareholders on the record date, at an issue price of $0.006 (0.6 cents) per share, to raise up to $1.2 million (before costs).
In addition, subscribers will receive one (1) free attaching “Short Dated” option, exercisable at $0.012 (1.2 cents) each on or before 31 March 2014 and one (1) free attaching “Long Dated” option, exercisable at $0.02 (2 cents) each on or before 31 August 2016, for every two (2) new shares subscribed for.
Funds raised from the Rights Issue are intended to be used primarily to fund drilling of the Company’s Eastern Hills antimony project in the Ashburton region of Western Australia.
Artemis’ Executive Director, Mr Guy Robertson, commented: “The Rights Issue offer by Artemis is at an attractive price for our shareholders and is designed to provide funds to bring our Eastern Hills antimony project to a level that will attract a partner to assist in the development of this emerging deposit.
If fully subscribed, the majority of the approximately $1.2 million in funds raised will be used to fund immediate drilling to upgrade the exploration target to a maiden JORC compliant resource and also to undertake a scoping study at the project.”
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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: [email protected] Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia
www.artemisresources.com.au
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The exploration target at Eastern Hills is 410,000 to 1,250,000 tonnes at a grade range of 1.51.9% antimony and 2.1-2.7% lead[1] .
Patersons Securities Limited is acting as Lead Manager and Underwriter to the Rights Issue which will be partially and conditionally underwritten to $730,000. Two Directors of Artemis and the Company’s major shareholder have agreed to sub-underwrite $280,000 of the Offer. The underwriting agreement may be terminated on events ordinarily included in such agreements including if the market price of the Company’s shares as quoted on ASX during a specified period is less than the issue price under the rights issue.
Further information in relation to the Rights Issue (including the timetable) will be set out in a prospectus which the Company intends to lodge shortly with ASX and which will be made available to eligible shareholders when the securities are offered. The “ex”-date is expected to be, and rights trading is expected to occur on, 29 July 2013.
Antimony facts
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Antimony is a specialty metal, commonly found in nature in its sulphide form of stibnite. Saleable products include antimony metal (ingot) and antimony trioxide (a white powder). Its uses include: a fire retardant in textiles and plastics (eg vehicles and aircraft) and a hardening/strengthening agent for lead and zinc alloys, lead batteries, ammunition and ceramics.
The price of antimony has risen significantly since the Eastern Hills deposit was discovered, from US$2,000 per tonne in 1997 to ~US$10,000 per tonne today (compared to a prevailing Copper price of ~ US$7,000 per tonne)². Antimony production and consumption is dominated by China, and global (particularly non-Chinese) demand is expected to continue to remain strong as highlighted by antimony’s prominent position on the EU Critical Raw Materials 2010 Report, the British Geological Survey 2012 Risk List and the US Endangered Elements List 2012.
Figure 1: Eastern Hills Project Location
¹This is an exploration target only, the potential quantity and grade is conceptual in nature, there has so far been insufficient exploration to define a Mineral Resource in compliance with the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource as defined by the JORC Code. The Eastern Hills exploration target was announced to the ASX on the 16[th] and 18[th] January 2013. ²London Metal Exchange
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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: [email protected] Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia
www.artemisresources.com.au
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Eastern Hills Drilling Programme
Artemis will receive co-funding from the WA Mines Department’s Exploration Incentive Scheme (Round 7) of up to $140,000 in support of its proposed drilling programme at the Eastern Hills project. The proposed RC drill programme will initially entail up to 16 drill holes (Figure 2) for a total of approximately 2,800m, with drill holes ranging from 100m to 250m down hole depth. As identified during recent field reconnaissance, site access to Eastern Hills will be relatively straightforward, with logistics and infrastructure also located close by.
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Figure 2 Eastern Hills geology, rockchip samples and drill hole plan
The Company has a team currently on site undertaking preparatory fieldwork and drilling is expected to commence in mid-August 2013.
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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: [email protected] Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia
www.artemisresources.com.au
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Proposed Capital Structure post Rights Issue
On completion of the Rights Issue, assuming full take up, the Company’s capital structure is expected to be as follows:
| Capital Structure | Shares | Existing Options |
Short Dated Options |
Long Dated Options |
Gross Amount raised |
|---|---|---|---|---|---|
| Existing | 490,290,396 | 23,933,333 | |||
| Rights Issue Securities |
196,116,158 | 98,058,079 | 98,058,079 | $1,176,697 | |
| On completion of Rights Issue |
686,406,554 | 23,933,333 | 98,058,079 | 98,058,079 |
- The Company currently has 23,933,333 unlisted options with varying terms on issue.
Eligible shareholders who want to acquire shares and attaching options under the Rights Issue should consider the prospectus carefully and must complete the personalised entitlement and acceptance form attached to the prospectus (unless paying by BPAY®), a copy of which will be sent to eligible shareholders.
Use of Funds
It is intended that the majority of funds raised through the Rights Issue will be used to undertake a drilling programme designed to achieve a JORC compliant resource at the Eastern Hills antimony project. Further exploration work is then expected to move the project towards a scoping study, to assist in demonstrating an economically viable project.
| Funds Available | Underwritten Amount |
Full Subscription |
|---|---|---|
| Cash on hand | 752,686 | 752,686 |
| Funds raised under the offer | 730,000 | 1,176,697 |
| Total funds available | 1,482,686 | 1,929,383 |
| Use of Funds | ||
| Eastern Hills Phase 1 Drilling | 279,000 | 279,000 |
| Eastern Hills Phase 2 Drilling | 215,000 | 215,000 |
| Eastern Hills Phase 3 Resource Expansion | - | 288,000 |
| Eastern Hills Scoping Study | - | 50,000 |
| General Working Capital | 893,686 | 981,383 |
| Cost of the Offer | 95,000 | 116,000 |
| 1,482,686 | 1,929,383 |
Investor Presentation
A copy of Artemis’ latest investor presentation is attached.
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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: [email protected] Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia
www.artemisresources.com.au
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Competent Person Statements
The information in this document that relates to Exploration Results and Exploration Targets is based on information compiled or reviewed by Mr Trevor Woolfe, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Woolfe is a consultant to the Company, and is employed by Alexander Cable Pty Ltd. Mr Woolfe has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Woolfe consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
ABOUT ARTEMIS RESOURCES
Artemis Resources Limited is a resources exploration company with a focus on its prospective Mount Clement (gold and antimony), Yandal (gold) and West Pilbara (gold and base metals) projects in Western Australia. These projects have significant exploration potential and close proximity to existing important deposits or producing mines. Artemis aims to develop a significant gold inventory through exploration and acquisitions which have the potential to become mines and create shareholder value.
For further information, please contact:
Guy Robertson Executive Director Phone: +61 2 9078 7670 Email: [email protected] Web Site: www.artemisresources.com.au
James Moses Mandate Corporate Mob: 0420 991 574 Email: [email protected]
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Artemis Resources Limited ABN: 80 107 051 749 Telephone: +61 2 9078 7660 | Facsimile: +61 2 9078 7661 | Email: [email protected] Level 9, 50 Margaret Street, SYDNEY NSW 2000 | PO Box R933 Royal Exchange, NSW 1225 Australia
www.artemisresources.com.au