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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:
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Contribute to the JV commitments with Metalicity Ltd (ASX:MCT) at Kookynie and Yundamindra Gold Projects
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Continuing work on the Kookynie Tailings Projects
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To Meet continuing ongoing costs of defending the Plaints on Yundamindra.
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To meet the costs of the proposed takeover (defence or otherwise)
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Working capital
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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:
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(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.
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(b) the Shares will be issued without disclosure to investors under Part 6D.2 of the Corporations Act;
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(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:
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(i) the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and
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(ii) section 674 of the Corporations Act as it applies to the Company; and
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(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.