MOHO RESOURCES LIMITED — Capital/Financing Update 2020

Jul 29, 2020

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30 July 2020
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SHARE PURCHASE PLAN

Moho Resources Ltd (ASX: MOH ) (“ Moho ” or “ the Company ”) is pleased to announce that it will undertake a Share Purchase Plan ( SPP ), pursuant to which existing eligible shareholders will have the opportunity to acquire up to $30,000 worth of ordinary shares (irrespective of the size of their shareholding), at an issue price of $0.13 per share, to raise up to $2,391,949, before costs.

The issue price of $0.13 represents a 19% discount to the 5 day volume weighted average price (VWAP) as at the Record Date and no brokerage or commissions are payable in respect of new shares applied for under the SPP. If the total SPP applications received are in excess of $2,391,949, the Directors reserve the right to scale back applications at their absolute discretion, on an equitable basis.

The funds raised from the SPP will be used primarily at the Company’s 100% owned Silver Swan North Project near Kalgoorlie, with a focus on advancing exploration and development of the highly prospective East Sampson Dam prospect. Funds will also be applied to advance gold exploration at the Company’s Burracoppin Project in the WA Wheatbelt and the Empress Springs Project near Croydon in Queensland.

Participation in the SPP is optional and will be offered to those shareholders with a registered address in Australia and New Zealand who were registered as a shareholder in the Company at 5.00pm WST on 29 July 2020 ( Record Date ).

The directors advise they intend to participate in the SPP.

Eligible Shareholders will be posted the SPP offer document together with their personalised application form in accordance with the below timetable.

JUNIOR MINERAL EXPLORATION INCENTIVE SCHEME

The Company is also pleased to advise that it has been notified by the Australian Taxation Office (“ATO”) that its application to participate in the Junior Mineral Exploration Incentive (“JMEI”) scheme has been accepted and the Company has received an allocation of up to $1,050,000 of exploration credits for the financial year ended 30 June 2021 ( 2021 Income Year ).

The JMEI Scheme applies to Australian residents who acquire new shares in mineral exploration companies that carry out “greenfields” mineral exploration in Australia that have received an exploration credit allocation. Eligible investors must be Australian resident shareholders who apply for and are issued shares in Moho’s capital raising activities during the 2021 Income Year. JMEI credits will be distributed to all eligible investors on a pro-rata basis proportionate to their investment and are generally in the form of refundable tax offsets (for individual shareholders and superannuation funds) or franking credits (for companies).

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Investors should be aware that Moho can’t guarantee that eligible shareholders will receive the maximum number of JMEI credits available as the actual number of credits received by each eligible shareholder for the 2021 Income Year is subject to a number of factors. Furthermore, receiving a JMEI credit could have tax consequences, therefore, all eligible shareholders are encouraged to seek their own independent tax advice before making a decision on whether to participate in any offer to acquire shares in the Company. Eligible shareholders will be notified by the Company of their JMEI credit entitlement (if any) once the Company has lodged its 2021 Income Year tax return, expected to be around October 2021. Any JMEI credits received will apply to income tax assessed for the 2021 Income Year. For further information on the JMEI refer to the ATO website (https://www.ato.gov.au/general/new-legislation/in-detail/direct-taxes/income-tax-for-businesses/juniorminerals-exploration-incentive/).

Subject to compliance with the JMEI scheme, eligible Australian shareholders that participate in the SPP will be eligible to receive JMEI credits.

The proposed timetable for the SPP is detailed below:

EVENT	DATE
Record Date (for identifying shareholders entitled to participate in the SPP)	29 July 2020
Announcement Date	30 July 2020
Despatch Offer Document (SPP offer materials dispatched to eligible	7 August 2020
shareholders)
Opening Date	7 August 2020
Closing Date	28 August 2020
Completion Date (results of the SPP announced by the Company)	2 September 2020
Allotment Date	8 September 2020
Quotation and Despatch Date	8 September 2020

ENDS

The Board of Directors of Moho Resources Limited authorised this announcement to be given to ASX.

For further information contact:

Ralph Winter

Commercial Director Moho Resources Limited T: +61 8 9481 0389 E: admin@mohoresources.com.au