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UNION STAR METALS LTD — Capital/Financing Update 2011
Aug 15, 2011
65987_rns_2011-08-15_d709d7b3-5933-429e-8794-b32b7e950f3e.pdf
Capital/Financing Update
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ACN 124 541 466 ABN 36 124 541 466
Statement of Commitments
This statement is dated 1 August 2011. The Company raised $7,515,000 under the Company’s Prospectus dated 24 May 2011 prepared by the Company for the offer of 20,000,000 Shares at an issue price of $0.60 each and 8,000,000 free attaching Options with an exercise price of $0.20 each exercisable on or before 8 December 2012 to raise up to $12,000,000 and the Supplementary Prospectus dated 2 June 2011.
The Company intends to apply the funds raised from its offer as follows:
| Item | Year 1 | Year 2 | Total |
|---|---|---|---|
| Exploration and Evaluation | |||
| Expenditure | |||
| Infrastructure / Logistics - Victoadal | 475,000 | 225,000 | 700,000 |
| Infrastructure / Logistics - Bacata & Santa Rosita |
188,326 | 88,624 | 276,950 |
| Further licence application costs and expenses |
85,000 | 85,000 | 170,000 |
| Drilling - Victoadal | 1,204,000 | 2,408,000 | 3,612,000 |
| Drilling – Bacata | 100,000 | 190,000 | 290,000 |
| Drilling - Santa Rosita | - | 550,000 |
550,000 |
| Exploration - Santa Rosita Licence | 80,000 | 38,800 | 118,800 |
| Subtotal of Exploration and Evaluation Expenditure |
2,132,326 | 3,585,424 | 5,717,750 |
| Expenses of the offer | |||
| Anticipated expenses of the offer | 805,636 | - | 805,636 |
| Admin and Working Capital | |||
| Employee Administration and compliance expenses |
262,500 | 262,500 | 525,000 |
| Financial Administration and compliance |
70,000 | 70,000 | 140,000 |
| Legal expenses | 25,000 | 25,000 | 50,000 |
| Travel and accommodation expenses | 25,000 | 25,000 | 50,000 |
| _Working Capital _ | 690,000 | 690,000 | 1,380,000 |
| Subtotal of Admin and Working Capital |
1,072,500 | 1,072,500 | 2,145,000 |
| Total Costs | 4,010,462 | 4,657,924 | 8,668,386 |
| Total Raised | 7,515,000 | ||
| Cash existing cash reserves at time ofprospectus |
- | 1,300,000 | |
| Surplus | 146,614 |
The above table is a statement of current intentions as of the date of this statement. As with any budget, intervening events (including exploration success or failure) and new circumstances have the potential to affect the ultimate way funds will be applied. The Board reserves the right to alter the way funds are applied on this basis. This budget is inclusive of existing cash supplies available to the Company at the time of the Prospectus.
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