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SUPERIOR RESOURCES LIMITED Capital/Financing Update 2018
65848_rns_2018-01-16_31e8ed31-6014-4d53-a029-e33f55539a72.pdf
Capital/Financing Update
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SUPERIOR TO RAISE UP TO $1.86 MILLION TO FUND EXPLORATION AT ITS GREENVALE AND NW QLD PROJECTS
HIGHLIGHTS:
- Placement and non-renounceable rights issue to raise up to $1.863 million for exploration of the Company's new cobalt and other prospects at its NE Qld Greenvale and NW Qld zinc-lead-copper projects
- $625,619 raised via over-subscribed placement to sophisticated investors at 0.9 cents per share
- Up to $1.238 million to be raised via a 1 for 4 pro-rata rights issue at 0.9 cents per share
Superior Resources Limited (ASX Code: SPQ) (Superior or Company) is pleased to announce a capital raising comprising a placement and a non-renounceable rights issue to raise up to $1.863 million (before costs).
Placement
The Company has received commitments from sophisticated investors for 69,513,270 new fully paid ordinary shares (Placement Shares) at 0.9 cents per share (Placement). Investors who subscribed under the Placement will receive one free attaching option for every two Placement Shares issued. The options will have an exercise price of 1.6 cents, and expiring on 31 August 2019. The Placement was oversubscribed and was priced at an 18.18% discount to the Company's last closing share price of $0.0011 and a 24.05% discount to the VWAP over the last 15 days upon which SPQ shares were traded of $0.01185.
Placement Shares issued under the Placement will rank equally with existing fully paid ordinary shares and will be issued within Superior's existing placement capacity under ASX Listing Rule 7.1 and 7.1A. Accordingly, shareholder approval is not required for the Placement.
Settlement of the Placement is expected to be completed on Monday, 22 January 2018.
Rights Issue
The rights issue (Rights Issue) will be offered to existing shareholders on a pro-rata basis of one new share for every four ordinary fully paid shares held in the Company on 30 January 2018 (Record Date), at a price of 0.9 cents per new share. Shareholders who subscribe under the Rights Issue will also receive one free attaching option for every two entitlement shares issued with each option having an exercise price of 1.6 cents and expiring on 31 August 2019. The pricing and terms of the Rights Issue has been set so that shareholders can obtain new shares and options at the same price and terms as subscribers under the Placement.
Subscribers under the Placement can participate in the Rights Issue.
The Directors reserve the right, together with the lead manager to the issue, to place any shortfall
from the Rights Issue.
Each of the members of the board intend to participate in the Rights Issue.
The lead manager to the Placement will be entitled to a fee of 6% on all funds raised from the Placement and on proceeds from shortfall shares it places under the Rights Issue. The lead manager will also receive 10 million options (having the same terms as options issued under the Placement and Rights Issue). The options will be issued under the Company's existing placement capacity under ASX Listing Rule 7.1, and accordingly shareholder approval is not required for the issue.
Use of Funds
Funds raised under the Placement and Rights Issue will be used to:
Expedite exploration of the High-Impact Greenvale porphyry / VMS / vein gold / nickel-cobalt prospects
- New Lucky Creek Prospect
- o Conduct an initial exploration program, including drilling, on the recently recognised Lucky Creek Cobalt-Nickel-Copper prospect.
- o Conduct a follow-up drill program if warranted.
- Generation of and exploration work on any additional cobalt prospects that may be generated within the Greenvale Project area.
- Steam Engine Gold Deposit
- o Phase 2 drilling to increase the current maiden gold mineral resource estimate.
- Bottletree Prospect (potential porphyry copper system)
- o Conduct an IP geophysical survey.
- o Phase 2 drilling, subject to results of IP survey.
- Wyandotte high-grade copper prospect
- o Initial drilling program and development of an initial mineral resource estimate.
Expedite exploration of NW Qld potential Tier 1 company-making lead-zinc projects
• Subject to arrangements with earn-in and JV partner Teck Australia, conduct exploration work including drilling on lead-zinc-copper targets and copper-cobalt targets at the Nicholson Project.
Managing Director, Peter Hwang commented "We have been very pleased with the support that Superior has received during the capital raising exercise so far and from the market in the recent trading period. The funds will substantially enable the Company to conduct significant exploration programs on the new Lucky Creek Cobalt-Nickel Prospect as well as expedite the other Greenvale Prospects into phase 2 drilling programs.
We are particularly excited about the cobalt prospects that the Greenvale Project presents, being located only about 12 kilometres away from the developing SCONI scandium-cobalt-nickel project.
We also look forward to expediting the developing potential of the Nicholson Project, which is under an earn-in and joint venture arrangement with Teck Australia and the potential to devote increased exploration efforts on the Company's two potential tier 1 north-west Queensland lead-zinc projects."
Indicative Timetable1
| Announcement of Capital Raising to ASX | Wednesday, 17 January 2018 |
|---|---|
| Anticipated Placement settlement date | Monday, 22 January 2018 |
| Lodgement of prospectus for Rights Issue | Tuesday, 23 January 2018 |
| Exdate | Monday, 29 January 2018 |
| Record Date –Entitlement Offer | Friday, 2 February2018 |
| Prospectus and personalised entitlement andacceptance form sent to eligible shareholdersEntitlement Offer Opens | Friday, 6 February2018 |
| Entitlement Offer Closes(5pm AEDT) | Friday, 2 March 2018 |
| ASX notified of under-subscriptions | Wednesday, 7 March 2018 |
| Issue dateunder Rights Issue | Friday, 9 March 2018 |
1 All dates are indicative only and may change, subject to the Listing Rules and Corporations Act.
A prospectus for the offer and personalised entitlement and acceptance form will be sent to eligible shareholders in accordance with the above timetable. Persons should consider the prospectus in deciding whether to acquire the securities. Anybody wanting to acquire securities will need to complete the application form that will be in, or will accompany the prospectus.
For more information:
Peter Hwang Carlos Fernicola Managing Director Chairman Tel: +61 7 3847 2887 +61 7 3229 1799 www.superiorresources.com.au [email protected]
Figure 2. Steam Engine – Interpreted geology showing the gold bearing lodes and drill holes Certain statements made in this report may contain or comprise certain forward-looking statements. Although Superior Resources Limited believes that any estimates and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results and estimations could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in the economic and market conditions, success of business and operating initiatives and changes in the regulatory environment. Superior undertakes no obligation to update publicly or release any revisions of any forwardlooking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.