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EMETALS LIMITED Capital/Financing Update 2021

Nov 18, 2021

64850_rns_2021-11-18_a9a5b2d7-0681-4dba-943f-dfd088a70614.pdf

Capital/Financing Update

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Proposed issue of securities

Announcement Summary

Entity name
EMETALS LIMITED

Announcement Type
New announcement

Date of this announcement
19/11/2021

The Proposed issue is:
☑ A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

ASX +security code +Security description Maximum Number of +securities to be issued
New class-code to be confirmed Unlisted Options, exercisable at $0.03 on or before 30 September 2025 350,000,000
New class-code to be confirmed Unlisted Options, exercisable at $0.03 on or before 30 September 2025 40,000,000
New class-code to be confirmed Unlisted Options, exercisable at $0.03 on or before 30 September 2025 30,000,000
EMT ORDINARY FULLY PAID 335,000,000

Proposed +issue date
23/12/2021

Refer to next page for full details of the announcement

Proposed issue of securities


Proposed issue of securities

Part 1 - Entity and announcement details

1.1 Name of +Entity

EMETALS LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

If the +securities are being offered under a +disclosure document or +PDS and are intended to be quoted on ASX, we also apply for quotation of all of the +securities that may be issued under the +disclosure document or +PDS on the terms set out in Appendix 2A of the ASX Listing Rules (on the understanding that once the final number of +securities issued under the +disclosure document or +PDS is known, in accordance with Listing Rule 3.10.3C, we will complete and lodge with ASX an Appendix 2A online form notifying ASX of their issue and applying for their quotation).

1.2 Registered Number Type

ACN

Registration Number

142411390

1.3 ASX issuer code

EMT

1.4 The announcement is

☑ New announcement

1.5 Date of this announcement

19/11/2021

1.6 The Proposed issue is:

☑ A placement or other type of issue

Proposed issue of securities


Proposed issue of securities

Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 Do any external approvals need to be obtained or other conditions satisfied before the placement or other type of issue can proceed on an unconditional basis?
☑ Yes

7A.1a Conditions

Approval/Condition Date for determination Is the date estimated or actual? ** Approval received/condition met?
+Security holder approval 23/12/2021 ☑ Estimated No

Comments

The Placement and associated securities issues will be subject to shareholder approval.

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)?
☑ Existing class

Will the proposed issue of this +security include an offer of attaching +securities?
☑ Yes

Details of +securities proposed to be issued

ASX +security code and description
EMT : ORDINARY FULLY PAID

Number of +securities proposed to be issued
250,000,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration?
☑ Yes

Proposed issue of securities


Proposed issue of securities

In what currency is the cash consideration being paid?
AUD - Australian Dollar

What is the issue price per +security?
AUD 0.01250

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class?
☑ Yes

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)?
☑ New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1?
☑ No

Will the entity be seeking quotation of the 'new' class of +securities on ASX?
☑ No

ASX +security code +Security description
New class-code to be confirmed Unlisted Options, exercisable at $0.03 on or before 30 September 2025

+Security type
Options

Number of +securities proposed to be issued
350,000,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration?
☑ No

Please describe the consideration being provided for the +securities
Free attaching one for one Unlisted Options issued pursuant to the Placement

Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities
1,424,665.000000

Proposed issue of securities


Proposed issue of securities

Will all the +securities issued in this class rank equally in all respects from their issue date?
☑ Yes

Options details

+Security currency
AUD - Australian Dollar

Exercise price
AUD 0.0300

Expiry date
30/9/2025

Details of the type of +security that will be issued if the option is exercised
Other

Description
Free attaching one for one Unlisted Options issued pursuant to the Placement

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement.

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)?
☑ Existing class

Will the proposed issue of this +security include an offer of attaching +securities?
☑ Yes

Details of +securities proposed to be issued

ASX +security code and description
EMT : ORDINARY FULLY PAID

Number of +securities proposed to be issued
40,000,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration?
☑ Yes

Proposed issue of securities


Proposed issue of securities

In what currency is the cash consideration being paid?
AUD - Australian Dollar

What is the issue price per +security?
AUD 0.01250

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class?
☑ Yes

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)?
☑ New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1?
☑ No

Will the entity be seeking quotation of the 'new' class of +securities on ASX?
☑ No

ASX +security code +Security description
New class-code to be confirmed Unlisted Options, exercisable at $0.03 on or before 30 September 2025

+Security type
Options

Number of +securities proposed to be issued
40,000,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration?
☑ No

Please describe the consideration being provided for the +securities
Free attaching one for one Unlisted Options issued pursuant to the Placement - Director Participation

Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities
162,818.000000

Proposed issue of securities


Proposed issue of securities

Will all the +securities issued in this class rank equally in all respects from their issue date?
☑ Yes

Options details

+Security currency
AUD - Australian Dollar

Exercise price
AUD 0.0300

Expiry date
30/9/2025

Details of the type of +security that will be issued if the option is exercised
Other

Description
Free attaching one for one Unlisted Options issued pursuant to the Placement - Director Participation

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement.

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)?
☑ Existing class

Will the proposed issue of this +security include an offer of attaching +securities?
☑ No

Details of +securities proposed to be issued

ASX +security code and description
EMT : ORDINARY FULLY PAID

Number of +securities proposed to be issued
15,000,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration?
☑ No

Proposed issue of securities


Proposed issue of securities

Please describe the consideration being provided for the +securities

In consideration for the Acquisition, and subject to the terms and conditions of the Agreement, eMetals agrees to issue 15,000,000 fully paid ordinary shares in the capital of eMetals (Shares) at a deemed issue price of $0.02 per Share.

Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities

300,000.000000

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class?

☑ Yes

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)?

☑ Existing class

Will the proposed issue of this +security include an offer of attaching +securities?

☑ Yes

Details of +securities proposed to be issued

ASX +security code and description

EMT : ORDINARY FULLY PAID

Number of +securities proposed to be issued

30,000,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration?

☑ No

Please describe the consideration being provided for the +securities

Lead Manager fees to the offer and Corporate Advisor fees

Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities

375,000.000000

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class?

☑ Yes

Proposed issue of securities


Proposed issue of securities

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)?

☑ New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1?

☑ No

Will the entity be seeking quotation of the 'new' class of +securities on ASX?

☑ No

ASX +security code +Security description
New class-code to be confirmed Unlisted Options, exercisable at $0.03 on or before 30 September 2025

+Security type

Options

Number of +securities proposed to be issued

30,000,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration?

☑ No

Please describe the consideration being provided for the +securities

Free attaching one for one Unlisted Options issued pursuant to the Placement

Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities

122,114.000000

Will all the +securities issued in this class rank equally in all respects from their issue date?

☑ Yes

Options details

+Security currency

AUD - Australian Dollar

Proposed issue of securities


Proposed issue of securities

Exercise price
AUD 0.0300
Expiry date
30/9/2025

Details of the type of +security that will be issued if the option is exercised
Other

Description

Free attaching one for one Unlisted Options issued pursuant to the Placemen

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement.

Part 7C - Timetable

7C.1 Proposed +issue date
23/12/2021

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1?
☑ Yes

7D.1a Date of meeting or proposed meeting to approve the issue under listing rule 7.1
23/12/2021

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue?
☑ Yes

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules?
☑ No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow?
☑ No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue?
☑ Yes

Proposed issue of securities


Proposed issue of securities

7E.1a Who is the lead manager/broker?
RM Corporate Finance Pty Ltd (AFSL 315235) (Lead Manager) (RM Corporate) have been appointed as lead manager to the Placement.

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?
RM Corporate and or its nominees will receive a Placement Fee of 6% plus GST for managing the Placement. The Placement Fee may be paid in Shares on the same terms as the Placement. RM Corporate and or its nominees will also receive a success fee of 9,000,000 Shares and 9,000,000 Options subject to shareholder approval at the forthcoming EGM.

7E.2 Is the proposed issue to be underwritten?
☑ No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Part 7F - Further Information

7F.01 The purpose(s) for which the entity is issuing the securities
Funds raised via the Placement will be applied to progressing the exploration activities & work programs on the current and acquired projects, project generation activities and general working capital purposes.

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds?
☑ No

7F.2 Any other information the entity wishes to provide about the proposed issue

7F.3 Any on-sale of the +securities proposed to be issued within 12 months of their date of issue will comply with the secondary sale provisions in sections 707(3) and 1012C(6) of the Corporations Act by virtue of:
☑ The publication of a cleansing notice under section 708A(5), 708AA(2)(f), 1012DA(5) or 1012DAA(2)(f)

Proposed issue of securities