ASX ANNOUNCEMENT
2 December 2014 ASX Code: AGS
NON-RENOUNCEABLE RIGHTS ISSUE TO RAISE UP TO $4.96 MILLION
Alliance Resources Limited (ASX:AGS) ("Alliance" or "Company") today announced that it will conduct a non-renounceable rights issue to Shareholders on the basis of 2 new Shares for every 11 Shares held at the record date at 8 cents per new Share to raise approximately $4.96 million (before costs) ("Rights Issue").
Each Shareholder will also be entitled to receive one (1) attaching New Option for every new Share subscribed for, each exercisable into one Share at an exercise price of 15 cents per Share and expiring on
30 September 2015, for no additional cash consideration. The Rights Issue is not underwritten.
The Rights Issue price represents a discount of approximately 23.8% to the closing price of Alliance Shares last traded on ASX on 1 December 2014 (10.5 cents) and a discount of approximately 27.2% to the 15 day volume weighted average of Alliance Shares traded on ASX (10.994 cents).
Eligible Shareholders (other than Directors and related parties of the Company) may, in addition to taking up their entitlement to New Shares under the Entitlement Offer in full, apply for Additional New Shares, subject to availability and the discretion of the Directors.
The Entitlement Offer is being made pursuant to a Prospectus ("Prospectus"). The Prospectus was lodged with the ASX on 2 December 2014 and contains further information about how to take up your entitlement under the Entitlement Offer. The Prospectus will be available on the Company's website at www.allianceresources.com.au and on the ASX website and will be mailed to Shareholders after the Record Date.
The funds raised under the Rights Issue will primarily be used for:
• Four Mile Uranium Project November 2014 cash call (due in December) to maintain its participating interest in the Project.
• Costs awarded to Quasar and Heathgate in 2012 and 2013 in the Court proceedings commenced by Alliance concerning access to books, records and agreements pertaining to the Four Mile Joint Venture which are currently the subject of assessment by the Court
• Costs of the Offer
• General working capital, including legal fees in relation to matters currently before the Court
Suite 3, 51-55 City Road
Southbank, VIC, 3006
P +61 3 9697 9090 F +61 3 9697 9091 [email protected] www.allianceresources.com.au
ABN 38 063 293 336
ASX ANNOUNCEMENT
Managing Director Steve Johnston commented "that the Company is a uranium producer with a significant inventory of uranium concentrates, which when sold, will enable Alliance to declare a dividend, grow its existing 100% projects and fund new projects."
"We believe that the rights issue is well-priced for our existing shareholders and that the funds raised, if fully subscribed, should see Alliance through to first revenue".
Rights Issue Key Dates
Event
|
Date
|
Announcement of Issue
|
2 December 2014
|
Lodgment Date
(Appendix 3B and Prospectus with ASX)
|
2 December 2014
|
Notice of Issue sent to Shareholders
|
3 December 2014
|
"Ex" Date
|
4 December 2014
|
Record Date
|
8 December 2014
|
Opening Date (Dispatch of Offer Document to Shareholders)
|
11 December 2014
|
Closing Date
|
22 December 2014
|
Securities quoted on a deferred settlement basis
|
23 December 2014
|
Notify ASX of under subscriptions
|
29 December 2014
|
Issue of New Shares and dispatch of shareholding statements
|
31 December 2014
|
Share Trading Date
|
2 January 2015
|
Additional information relating to Alliance and its various mining and exploration projects can be found on the
Company's website: www.allianceresources.com.au
For further enquiries, please contact:
Bob Tolliday (Company Secretary)
T: +61 3 9697 9090
E: [email protected]
Suite 3, 51-55 City Road
Southbank, VIC, 3006
P +61 3 9697 9090 F +61 3 9697 9091 [email protected] www.allianceresources.com.au
ABN 38 063 293 336