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EAGLE MOUNTAIN MINING LIMITED — Capital/Financing Update 2019
May 13, 2019
64839_rns_2019-05-13_3c3b26c9-e02f-4f9d-aeb8-2b8387893563.pdf
Capital/Financing Update
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A S X A n n o u n c e m e n t | D a t e 1 4 M a y 2 0 1 9
Non-Renounceable Entitlement Offer Notice Letter Despatched
Eagle Mountain Mining Limited (ASX:EM2) (“ Eagle Mountain ”) advises that the attached letter was sent to shareholders today in accordance with the notice requirements for the recently announced non-renounceable entitlement offer (the Entitlement Offer ).
As a reminder key dates for the Entitlement Offer are set out below:
| Event | Date |
|---|---|
| Lodgement of Prospectus with ASIC and ASXLodgement of Appendix 3B with ASX | 13 May 2019 |
| Notice of Entitlement Offer sent to Shareholders | 14 May2019 |
| Sharesquoted on an “Ex” basis | 15 May2019 |
| Record Date for determiningEntitlements | 16 May2019 |
| Prospectus and Application Form despatched to EligibleShareholders and OpeningDate | 20 May 2019 |
| Last dayto extend the Offer closingdate | 4June 2019 |
| ClosingDate(5pm AWST) | 7June 2019 |
| New Sharesquoted on a deferred settlement basis | 11June 2019 |
| Notification of Shortfall | 13June 2019 |
| Issue of New Shares and Attaching OptionsDeferred settlement tradingends | 17 June 2019 |
| Commencement of New Shares trading on an ordinarysettlement basis | 18 June 2019 |
All dates are indicative only and subject to change without prior written notice. Any extension of the Closing Date will have a consequential effect on the date of issue of the New Shares and Attaching Options.
For further information please contact:
Charles Bass Mark Pitts BSc, MSc, FAusIMM, FAIG, FAICD B.Bus, FCA, GAICD Managing Director & CEO Company Secretary [email protected] [email protected]
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14 May 2019
Dear Shareholder
Non-Renounceable Entitlement Offer
As advised in the ASX announcement on 6 May 2019, Eagle Mountain Mining Limited (ASX: EM2) is undertaking a non-renounceable pro-rata entitlement offer (Entitlement Offer) to eligible shareholders of ordinary fully paid shares in the Company at an issue price of $0.15 per share on the basis of 1 new share (New Share) for every 5 shares held at the record date on 16 May 2019 (Record Date), together with 1 free attaching option for every 2 New Shares subscribed for and issued, exercisable at $0.20 per share, with an expiry date of 31 July 2021 (Attaching Options). Pursuant to the Entitlement Offer, the Company will issue approximately 18.5 million New Shares to raise up to $2.77 million before costs.
Eligible Shareholders
The Entitlement Offer is available to all EM2 shareholders (Shareholders) registered on the Record Date whose registered address is in Australia, New Zealand, Switzerland or Singapore ( Eligible Shareholders ). The Entitlement Offer is not being extended to any Shareholders with addresses outside these jurisdictions.
New Shares will rank equally with all fully paid ordinary shares in the capital of the Company (Shares) already on issue.
Prospectus
Details of the Entitlement Offer are contained in the Prospectus which was lodged with ASIC and ASX on 13 May 2019. The Prospectus can be accessed from the ASX and EM2 websites, www.asx.com.au and www.eaglemountain.com.au respectively.
A copy of the Prospectus is intended to be sent to Eligible Shareholders on 20 May 2019.
Purpose of the Entitlement Offer
The Company is continuing to review the data received from the recent ‘Phase 1’ drilling campaign carried out over the Pacific Horizon Prospect on its highly prospective Silver Mountain copper-gold project in Arizona. Drilling is continuing on the Scarlett Prospect at two target areas, the Gold Veins and Silver Dollar Mine. Drilling has targeted the four unique styles of mineralisation found within the Silver Mountain Project, which lies on the same
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geological setting that hosts world-class porphyry copper mines such as Bagdad and Miami and also BHP/Rio’s Resolution project (one of the largest undeveloped copper deposits in the world). They also lie on the southern extension of the metallogenic belt that hosts United Verde and Iron King mines.
Funds raised will enable ongoing exploration at the Silver Mountain Project, the evaluation of new opportunities in Arizona and will contribute to the costs of the Entitlement Offer and provide additional working capital.
Indicative Timetable
The New Shares and Attaching Options will be offered in accordance with the following indicative timetable:
| Event | Date |
|---|---|
| Lodgement of Prospectus with ASIC and ASXLodgement of Appendix 3B with ASX | 13 May 2019 |
| Notice of Entitlement Offer sent to Shareholders | 14 May2019 |
| Sharesquoted on an “Ex” basis | 15 May2019 |
| Record Date for determiningEntitlements | 16 May2019 |
| Prospectus and Application Form despatched to EligibleShareholders and OpeningDate | 20 May 2019 |
| Last dayto extend the Offer closingdate | 4June 2019 |
| ClosingDate(5pm AWST) | 7June 2019 |
| New Sharesquoted on a deferred settlement basis | 11June 2019 |
| Notification of Shortfall | 13June 2019 |
| Issue of New Shares and Attaching OptionsDeferred settlement tradingends | 17 June 2019 |
| Commencement of New Shares trading on an ordinarysettlement basis | 18 June 2019 |
All dates are indicative only and subject to change without prior written notice. Any extension of the Closing Date will have a consequential effect on the date of issue of the New Shares and Attaching Options.
Shortfall
The Company reserves the right, subject to any restrictions imposed by the Corporations Act and the Listing Rules, to issue New Shares not subscribed for under the Entitlement Offer (Shortfall Shares) in accordance with the allocation policy set out in the Prospectus (Shortfall Offer). Eligible Shareholders who subscribe for their full entitlement may participate in the Shortfall Offer by following the instructions on their Entitlement and Acceptance Form.
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Effect on Capital Structure
The table below sets out the impact of the Entitlement Offer and Attaching Options on the capital structure of the Company:
| Shares | UnquotedOptions | PerformanceRights | |
|---|---|---|---|
| Existing Securities at the date ofthis announcement | 92,526,600 | 18,156,599 | 180,000 |
| Maximum number of New Sharesand Attaching Options to beissued under the EntitlementOffer | 18,505,320 | 9,252,660 | Nil |
| Broker Options2 | Nil | 1,000,000 | Nil |
| TOTAL1 | 111,031,920 | 28,409,259 | 180,000 |
1 Assuming no options are exercised prior to the Record Date and that the Entitlement Offer is fully subscribed (subject to rounding).
2 The Company has agreed to issue 1 million Broker Options to the Lead Manager of the Entitlement Offer, Peloton Capital Pty Ltd, on the same terms as the Attaching Options, upon successful completion of the Entitlement Offer (full subscription), as partial consideration for the services provided in connection with the Entitlement Offer.
The Directors of EM2 urge you to read the Prospectus carefully and seek advice from your financial adviser if you have any queries. This notice is to inform you of the Entitlement Offer. You are not required to do anything in respect to this letter.
For all enquiries concerning the Prospectus, please contact the Company Secretary Mr Mark Pitts at [email protected]. For all general shareholder enquiries, please contact Computershare Investor Services Pty Limited on 1300 850 505 (within Australia) or +61 3 9415 4000 (outside Australia).
Yours sincerely
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Charles Bass Managing Director & CEO
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