VERITY RESOURCES LIMITED — Capital/Financing Update 2020

Jul 7, 2020

Six Sigma Metals

8 JULY 2020

Corporate Details

ASX Code: SI6

Directors

Patrick Holywell

Chairman

Steve Groves

Successful capital raising completed

Non-Executive Director

Joshua Letcher

Six Sigma Metals Limited (ASX:Si6, Six Sigma or Company) is pleased to advise that the Company has received commitments for a placement of 160 million shares at a price of A$0.006 per share to sophisticated, professional and other exempt investors to raise ~A$960,000 (before costs) (Placement). One attaching option (exercisable at 0.8c per share, expiring 1 July 2022) for every two Placement shares will be issued to Placement participants.

The Placement pricing represents a + 10% premium to the 10-day VWAP and 20% premium to the 20-day VWAP.

In addition, the Company intends to undertake a Share Purchase Plan to raise an additional $480,000 on the same terms as the Placement (SPP). Holders of Six Sigma shares with an address in Australia or New Zealand as at 5:00pm WST on 7 July 2020 may apply for up to $15,000 of shares on the same terms as the Placement. The SPP offer document will be dispatched to shareholders in due course and the SPP will not be underwritten.

Non-Executive Director

Mauro Piccini

Company Secretary

Contact

Suite 2, Level 1 1 Altona Street West Perth WA Australia 6005

+61 (8) 6559 1792

info@sixsigmametals.com sixsigmametals.com

The Placement shares will be placed in accordance with the Company’s available capacity

pursuant to Listing Rule 7.1 and 7.1A. The Placement shares will rank equally with existing Six Sigma ordinary shares quoted on the ASX. The issue of the Placement shares is expected to on or around 14 July 2020. An indicative timetable for the Placement and the SPP is set out in Annexure A to this announcement.

Chairman of Six Sigma, Mr Patrick Holywell, said: “We are pleased with the interest and support received, particularly from our current larger shareholders. We are also pleased to offer existing shareholders the opportunity to increase their investment. Funds raised under the placement will be used to continue exploration in Botswana, assess new gold and base metals opportunities and for working capital purposes.”

Subject to ASX requirements, the Company intends to seek quotation of the attaching options under the Placement and the SPP. The attaching options will not be issued under the SPP offer document but instead will be issued under a separate disclosure document to be lodged after close of the SPP offer. If quotation of the attaching options cannot be obtained, they will remain as unquoted options.

Xcel Capital Pty Ltd has been engaged to act as Lead Manager to the Placement and SPP and will be paid a fee of $102,320 in addition to 30 million options issued with the same terms as the attaching options issued to Placement subscribers.

The issue of the attaching Placement options, SPP options and Lead Manager options will be subject to shareholder approval expected to be held in September 2020.

The SPP meets the requirements of Listing Rule 7.2 exception 5. Any shortfall associated with the SPP will be placed by the Lead Manager and subject to shareholder approval.

Authorsied on behalf of the Board,

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Mauro Piccini Company Secretary

Annexure A – Indicative Timetable

Event	Date
Record Date for participation in SPP	Tuesday, 7 July 2020
Announcement of SPP	Wednesday, 8 July 2020
Issue of Placement Shares	Tuesday, 14 July 2020
Dispatch of SPP Booklet and release on ASX (SPP Offer opens)	Thursday, 23 July 2020
SPP Closes	Friday, 14 August 2020
Announce results of SPP Offer	Tuesday, 18 August 2020
Issue and quotation of SPP shares	Thursday, 20 August 2020

Note: These dates are indicative only. Subject to ASX requirements, the Company may vary the dates (including bringing forward or extending the closing date) of the SPP in its discretion and without notice.

About Six Sigma Metals

Six Sigma Metals (ASX: SI6) is an exploration company operating in Southern Africa specifically targeting projects containing “battery or new world” metals to capitalise on the rising interest in the sector due to recent global technology advances and increasing demand for these commodities.

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