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DGR GLOBAL LIMITED — Capital/Financing Update 2015
Sep 30, 2015
64771_rns_2015-09-30_199aaf8e-8afe-49b7-bea8-1928e1da1ba4.pdf
Capital/Financing Update
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DGR Global Limited
1 October 2015
DGR Business and Corporate Update
The Directors of DGR Global Limited (ASX: DGR) wish to provide shareholders and investors with an update of the latest activity and developments for the Company and its relevant portfolio interests, further to recent announcements made in relation to Navaho Gold Ltd and Armour Energy Ltd.
DGR Global Ltd
The Directors of DGR Global Limited (ASX: DGR) advise that the Company has received an application for a copy of its full register of members by WestSide Corporation Limited (WestSide).
To the best of the Company’s knowledge, WestSide is not a current shareholder of the Company. WestSide has made a conditional, unsolicited, hostile take‐over bid for Armour Energy (25% owned by DGR Global) at 12 cents per share.
As outlined in the Company’s announcement of 13 May 2015, and further to the announcement made by DGR Global yesterday, the Board now considers it appropriate to announce its intention to undertake an underwritten, non‐renounceable entitlements issue on a 1:4 basis at a price of 3 cents per share, representing a discount of approximately 20% to the 30 calendar day VWAP for trading in the Company’s shares. It will be open for shareholders to apply for greater than their pro‐rata entitlement, subject to a maximum holding cap of 19.99% to be applied. A mandate with Bizzell Capital Partners to act as manager and underwriter for the issue is in the process of being finalized.
The Company will commence preparing the relevant documents and announce a timetable and full details as soon as possible.
SolGold Plc / AIM:SOLG – DGR 10% ‐ 74.5m Shares | www.solgold.com.au
Further to the announcement of 21 August 2015, DGR Global has agreed to increase the amount of its loan to SolGold from $500,000 to $1,250,000 and has reached in‐principle agreement with SolGold to subscribe that amount as Convertible Notes.
The in‐principle terms agreed for the Convertible Notes are as follows:
Interest rate: 9.5% per annum
Term: 12 months
Interest Payment: Periodic payment (by the end of each calendar month). Accrued and unpaid interest may be capitalised at the note holder’s election.
Conversion Terms: Convertible at any time, at the note holder’s election, but subject to 10 days notice. Convertible in full or in part. Convertible into fully‐paid ordinary shares.
DGR Global Limited ACN 052 354 837
street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e [email protected] w www.dgrglobal.com.au
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Convertible at the higher of 1.75 pence or the price equal to 80% of the 5 Trading Day VWAP of the Company’s shares prior to a notice of intention to convert.
Brian Moller and Nicholas Mather are Directors of both SolGold and DGR Global. Accordingly, the finalised Convertible Note Deed will be approved by the non‐conflicted Directors.
Armour Energy Ltd | ASX: AJQ – DGR 25% ‐ 75m Shares | www.armourenergy.com.au
On 21 September 2015, Armour announced a 66% increase in its total Best Estimate Prospective Gas Resources in Northern Australia. The updated resource estimate includes maiden Prospective Gas Resources from the Tawallah Group Unconventional Reservoirs in the McArthur Basin of the Northern Territory, as first announced by Armour on 29 April 2015, and the Riversleigh Shale located beneath the Lawn Hill Shale in ATP 1087, Queensland.
The Board of Directors of Armour Energy continue to advise Armour shareholders to reject the WestSide take‐over bid.
Full details are available via www.armourenergy.com.au
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On behalf of the Board Karl Schlobohm Company Secretary
Electronic copies and more information are available on the Company website: www.dgrglobal.com.au
Email: [email protected]
For further information contact:
Mr Nicholas Mather Karl Schlobohm Pru Maclean Managing Director Company Secretary Investor Relations Ph: 07 3303 0680 Ph: 07 3303 0680 Ph: 07 – 3303 0635
About DGR Global Limited
DGR Global’s business is the creation of resource exploration development and mining companies.
The business uses the skills of a core team of talented geoscientists to identify resource projects capable of yielding world class discoveries of attractive commodities.
This is achieved through:
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The identification of commodities with a favorable 20 year price outlook.
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Geological terranes with:
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A demonstrated strong endowment for that commodity;
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An under‐explored history;
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Opportunity for the application of recently developed exploration techniques;
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Jurisdictions with improving socio‐economic and regulatory frameworks;
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Extensive available tenures.
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DGR Global Limited ACN 052 354 837
street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e [email protected] w www.dgrglobal.com.au
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DGR provides initial seed funding and management support to secure these assets in subsidiaries and develop these assets to more advanced funding stages. The Company has a pipeline of projects in daughter companies at various stages of emergence, and has recently crystalised a significant return through the sale of its 15% holding in Orbis Gold for $26million. Further development of its holdings in AIM listed SolGold and IronRidge Resources and ASX Listed AusTin Mining, Navaho Gold and Armour Energy and unlisted Archer Resources, are expected over the coming years.
The Company is currently involved in the search for safe high grade, high‐yielding production operations in which to invest the bulk of its available cash resources.
DGR Global has commenced an intended program of judicious dividend payments to its shareholders. The future of the dividend program will depend on circumstances from time to time.
The previous resource exploration and funding activities of DGR’s key personnel underscore the opportunities provided by the DGR business model.
DGR Global Limited ACN 052 354 837 street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e [email protected] w www.dgrglobal.com.au