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GREENWING RESOURCES LTD Capital/Financing Update 2007
65029_rns_2007-03-18_5b94e8c7-b0cc-402b-bb91-be3bb77a6686.pdf
Capital/Financing Update
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BASS METALS LTD ABN 31 109 933 995
19 March 2007
Dear Shareholder
Bass Metals Ltd - Renounceable Rights Issue
Bass Metals Ltd ("The Company") announced to the Australian Stock Exchange ("ASX") on 15 March 2007 a pro rata renounceable rights issue ("Rights Issue") to raise approximately \$4.43 million before costs. The Rights Issue offers:
- one new share for every four shares held at the Record Date (5.00pm WST on 28 March $\bullet$ 2007) at an issue price of \$0.28 per new share; and,
- one free attaching new option for every four new shares issued. The attaching new options $\bullet$ have an exercise price of \$0.40 and expire on 30 April 2010.
The Company will apply to have the new shares and new options quoted on ASX. The Rights Issue includes a shortfall facility whereby eligible shareholders may apply for additional new shares and attaching new options in excess of their entitlement at the issue price. The Shortfall will only be available subject to other eligible shareholders not taking up their entitlements. Allocation of any shortfall will be at the discretion of the Underwriter in consultation with the Directors.
Patersons Securities Limited is underwriting \$4.0 million of the Rights Issue and Intec Ltd. Bass Metals' major shareholder, has agreed to sub-underwrite \$1.5 million of the raising.
The funds raised will be used by the Company to provide working capital support to its proposed Que River mining project and to maintain the current vigorous level of exploration activity, particularly to follow-up on promising results from several regional targets.
The Prospectus relating to the Rights Issue has been lodged with ASIC and ASX and is available on the ASX website (www.asx.com.au) and also on the Company's website (www.bassmetals.com.au). The Prospectus and personalised Entitlement and Acceptance Form will be despatched to all eligible shareholders registered at the Record Date.
The timetable and important dates of the Rights Issue are set out below:
| Lodgement of Prospectus with ASIC | 16 March 2007 |
|---|---|
| Rights trading commences on ASX | 22 March 2007 |
| Record Date to identify Shareholders entitled to participate in the Rights Issue | 28 March 2007 |
| Dispatch of Prospectus and Entitlement and Acceptance Forms | 30 March 2007 |
| Last day of Rights trading on ASX | 11 April 2007 |
| Closing Date for the Rights Issue (5.00pm WST) | 18 April 2007 |
| Allotment of new shares and new options | 26 April 2007 |
| Dispatch of holding statements | 27 April 2007 |
| Trading of new shares and new options expected to commence on ASX | 30 April 2007 |
This timetable is indicative only. The Company, in conjunction with the Underwriter, reserves the right to vary the above dates subject to the Corporations Act and ASX Listing Rules.
The Rights Issue is made on a renounceable basis. This means that shareholders who do not wish to accept their entitlement may sell their rights ("Rights") on ASX. Trading of Rights on ASX is expected to commence on 22 March 2007 and end on 11 April 2007.
A total of approximately 15,831,878 new shares together with 3,957,970 free attaching new options will be offered to eligible shareholders under the Rights Issue.
The Company has decided that it is not practicable to make the Rights Issue to foreign shareholders who have a registered address in a country other than Australia or New Zealand having regard to the number of Shareholders in such places, the number and value of new shares they would be offered, and the substantial costs of complying with the legal and regulatory requirements of those other jurisdictions. The Company has appointed Patersons Securities Limited on normal commercial terms as nominee to sell the foreign shareholders Rights. Patersons Securities Limited will only sell those Rights if there is a viable market in the Rights and a premium over the expenses of sale can be obtained. Any such sale will be at a price and be conducted in a manner that Patersons Securities Limited will determine in its absolute discretion and the net proceeds will be sent to the foreign shareholder.
On behalf of the Board I invite you to consider the information provided in the Prospectus and encourage you to participate in the Rights Issue. If you have any questions regarding any aspects of this process please consult your financial advisor or address your questions to either the undersigned or Ms Susan Hunter, the Company Secretary via the contact details below or to [email protected].
Yours Sincerely
Mike Rosenstreich Managing Director