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NEX METALS EXPLORATION LIMITED Capital/Financing Update 2021

Sep 28, 2021

65427_rns_2021-09-28_70e47215-a367-4d82-8fc6-46f8b6847aa8.pdf

Capital/Financing Update

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Address: 45 Guthrie St Osborne Park, WA, 6017 Postal: PO Box 6731 East Perth, WA, 6892, Australia Phone: 61 8 9221 6813 Fax: 61 8 9221 3091 Email: [email protected] ABN: 63 124 706 449

29 September 2021

Non-Renounceable Rights Issue to Raise up to $3.115M

The Company is undertaking a Non- Renounceable Rights Issue to raise $3.115M.

Proceeds from the Rights Issue will be used to:

  • Contribute to the JV commitments with Metalicity Ltd (ASX:MCT) at Kookynie and Yundamindra Gold Projects

  • Continuing work on the Kookynie Tailings Projects

  • To Meet continuing ongoing costs of defending the Plaints on Yundamindra.

  • To meet the costs of the proposed takeover (defence or otherwise)

  • Working capital

  • Identification and acquisition of new project opportunities

1 for 3 Non-Renounceable Rights Issue to raise up to $3.115M (before costs of the issue) priced at $0.035 per Share which is at a discount (market price) to the 10 day VWAP of 16.66% which provides an attractive opportunity for existing shareholders to participate at a discounted price

*All references to $ are AUD unless otherwise noted

The Board of Nex Metals Explorations Ltd (ASX: NME, Nex or the Company) is pleased to announce that it is undertaking a capital raising via a non-renounceable rights issue (“Rights Issue”) to raise up to $3.115M before costs.

Proceeds from the Rights Issue will be used predominantly to advance the Company’s Joint Venture with Metalicity Limited ( ASX: MCT) at the Kookynie and Yundamindra Gold Projects.

Key Terms

The Key Terms of the Rights Issue are as follows:

Nature of Offer Non-Renounceable Rights Issue
New Share issue price $0.035 per New Share
Rights Issue Ratio 1 New Share for every 3 existing shares at the Record Date.
Number of New Shares to be issued Up to 89,007,875 New Shares
Amount Raised under the Rights Issue Up to $3,115,276 before issue costs

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Shareholders who are eligible with registered addresses inside Australia and New Zealand who hold ordinary shares in the Company (“Existing Shares”) as at 5.00pm AWDT on 12 October 2021 (“Eligible Shareholders”) will be entitled to participate in the Rights Issue. Eligible overseas shareholders holding shares through a nominee should contact their nominee to ensure they can participate.

Shareholders with registered addresses outside of Australia and New Zealand are not eligible to participate in the Offer (“Ineligible Shareholders”).

All Eligible Shareholders will be offered 1 New Share in the Company for every 3 Existing Shares held by the Eligible Shareholder, at an issue price of $0.035 per New Share. This represents a discount of approximately 16.66% to the volume weighted average price (VWAP) of Nex’s shares for the ten trading days before the announcement of $0.070.

Key Dates

Key dates for the Issue are set out below. The dates are indicative only and Nex reserves the right to vary them, subject to the Corporations Act 2001 (“Act”) and the ASX Listing Rules.

Announcement of Non-Renounceable Rights Issue 29 September 2021
Appendix 3B and cleansing notice lodged with the ASX 6 October 2021
Offer Document lodged with the ASX 6 October 2021
Ex Date 11 October 2021
Record Date to Determine entitlements to New Shares 12 October 2021
Dispatch of Offer Document 15 October 2021
Last day to extend Closing Date 29 October 2021
Closing Date and final time for receipt of Entitlement and Acceptance Forms and
payment in full for New Shares
5 November 2021
Announcement of results of the Non-Renounceable Rights Issue 8 November 2021
Issue of New Shares 12 November 2021
Holding Statements dispatched to Shareholders and commencement of trading 15 November 2021

This ASX announcement is authorised for release by the Board of Nex Metals Explorations Ltd.

Address: 45 Guthrie St Osborne Park, WA, 6017 Postal: PO Box 6731 East Perth, WA, 6892, Australia Phone: 61 8 9221 6813 Fax: 61 8 9221 3091 Email: [email protected]

ABN: 63 124 706 449

Section 708A Cleansing Statement

This notice is given by Nex Metals Explorations Ltd (Company) under Section 708A(5)(e) of the Corporations Act 2001 (Cth) (Corporations Act).

The Company hereby confirms that:

  • (a) the Company proposes to issue 89,007,875 fully paid ordinary shares (Shares) at an issue price of $0.035 (3.5 cents) per share in relation to a Non-Renounceable rights issue.

  • (b) the Shares will be issued without disclosure to investors under Part 6D.2 of the Corporations Act;

  • (c) As a disclosing entity the Company is subject to regular reporting and disclosure obligations; (d) as at the date of this notice the Company, as a disclosing entity under the Corporations Act, has complied with:

  • (i) the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and

  • (ii) section 674 of the Corporations Act as it applies to the Company; and

  • (e) as at the date of this announcement, there is no excluded information of the type referred to in Sections 708A(7) and 708A(8) of the Corporations Act.