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DEVELOP GLOBAL LIMITED — Capital/Financing Update 2022
Mar 16, 2022
64801_rns_2022-03-16_9bbe4fc8-4e4c-4168-8708-ee4d9054e10d.pdf
Capital/Financing Update
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ASX Announcement 17/03/2022
Not for release to US wire services or distribution in the United States
Completion of Retail Entitlement Offer
Strong demand for stock among global institutions; Proceeds will help fund acquisition of Woodlawn base metals project in NSW
Develop Global Limited (ASX:DVP) is pleased to announce the successful completion of the retail component of its fully underwritten entitlement offer, marking another milestone in its acquisition of the Woodlawn base metals project.
The Retail Entitlement Offer formed part of the Company’s broader capital raising which comprised a placement and 1 for 18.6 non-renounceable entitlement offer, as announced on 17 February 2022 ("Capital Raising"). The Capital Raising will collectively raise $50m at a price of A$3.30 per New Share. The Retail Entitlement Offer will raise approximately A$13.5m in total.
The Company received valid applications from eligible retail shareholders under the Retail Entitlement Offer for approximately 1.356m, shares (representing aggregate proceeds of approximately A$4.5m).
The total number of shares offered for subscription under the Retail Entitlement Offer was approximately 4.08m shares. As such, a shortfall of approximately 2.72m shares ("Shortfall Shares") will be subscribed for by Global Institutions, with significant demand for the shortfall from the Institutions, procured by Canaccord Genuity (Australia) Limited in its capacity as Lead Manager and Underwriter to the Capital Raising (see Develop's ASX announcement on 17 February 2022).
The New Shares under the Retail Entitlement Offer (including the Shortfall Shares) are expected to be issued on Monday, 21 March 2022, with trading to commence on a normal settlement basis on Tuesday, 22 March 2022. The New Shares will rank equally with existing fully paid ordinary shares in the Company.
Holding statements for the New Shares issued under the Retail Entitlement Offer are expected to be dispatched on Wednesday, 23 March 2022.
The Directors would like to thank participating Develop shareholders for their ongoing support.
This announcement has been authorised for release to ASX by Develop's Managing Director, Bill Beament.
Contact
INVESTORS Bill Beament Develop P: +61 8 6389 7400 E: [email protected]
MEDIA Paul Armstrong Read Corporate P: +61 8 9388 1474 E: [email protected]
About Develop
Develop (ASX: DVP) is an exploration and development company with a zinc-copper mine under C&M near Sydney in New South Wales and two advanced copper-zinc projects near Port Hedland in the Pilbara region of Western Australia. The C&M asset is the Woodlawn mine, a significant VMS geological system with over a 20-year production track record. The asset is planned for significant exploration to underpin a new mine plan. The two projects are the Sulphur Springs Project which includes the Sulphur Springs and Kangaroos Caves deposits, plus 27km of prospective tenements on the Panorama trend; and the JV on the Whim Creek Project, which includes the Resources at the Whim Creek, Mons Cupri and Salt Creek mines together with the Evelyn project and 18,100 ha of prospective tenements over the Whim Creek basin. The Company’s focus is to explore Woodlawn and bring it back to full production, and to finance its high-quality Sulphur Springs Project, paving the way for its transformation into a new major ASX-listed base metal producer in the medium term. This will position it to be a long-term supplier of copper and zinc to global markets at a time when significant shortfalls are expected for both metals, especially copper.
IMPORTANT NOTICE
This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer of securities for sale in the United States or any other jurisdiction in which such an offer would be illegal. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act or 1933 (as amended) or offered or sold, directly or indirectly, in the United States except in transactions exempt from, or not subject to, the registration of the US Securities Act of 1933 (as amended) and applicable securities laws of any state or other jurisdiction of the United States.