Microsoft Word - 2016 07 26 Placement Settles.docx
ASX REPORT
26 July | Page 1 of 1
Sipa Completes Placement - SPP to Follow
Following its announcement on 20 July 2016, Sipa Resources Limited (ASX: SRI) (the "Company" or "Sipa") is pleased to announce settlement of the private placement of 14,200,000 fully paid ordinary shares ("Shares") at an issue price of 2 cents per Share raising $284,000 which is $20,000 more than announced on 20 July 2016. The additional amount is due to a late application.
As previously announced, Sipa will also offer a Share Purchase Plan ("SPP") to all eligible shareholders of the Company, at 2 cents per Share (the same price as the placement). The SPP will enable eligible shareholders with registered addresses in Australia and New Zealand to have the opportunity to subscribe for up to $15,000 worth of Shares under the SPP.
The SPP proceeds will be capped at $2,000,000 (100,000,000 Shares). However, the Directors reserve the right to accept over subscriptions or to scale back applications in their absolute discretion.
New Shares issued under the SPP will rank equally with existing Sipa Shares.
Details of the SPP will be released to the ASX shortly and distributed to eligible shareholders on or about 27 July 2016.
The proceeds of the Placement and SPP, together with Sipa's cash reserves (~$1.6 million at the end of the June Quarter), will ensure that the Company is in a strong position to progress upcoming exploration programs.
In particular, the funds will be used to underpin the maiden aircore drill program at the recently acquired and highly prospective Paterson North Project in WA, which adjoins the Antipa Minerals' Citadel Project to which Rio Tinto Limited is farming in.
A drill rig has been booked and final access clearances are currently in progress ahead of the start of drilling, which is scheduled for 1 August 2016.
The funds will also enable Sipa to undertake the next important phase of exploration at the exciting Akelikongo nickel discovery in Uganda, where further drilling is planned to delineate higher grade massive sulphide zones in the important basal position. Refer ASX announcement dated 20 July 2016 for further information on the proposed programs.
This follows recent important breakthroughs in the Company's understanding of the geometry, structure and potential of the system following a successful drilling program earlier this year which confirmed the presence of a very large magmatic nickel sulphide system.
For more information: Lynda Burnett Managing Director
Sipa Resources Limited
+61 (0) 8 9388 1551
[email protected]
Media Inquiries: Nicholas Read Read Corporate
+61 (0) 8 9388 1474
[email protected]
REGISTERED OFFICE AND POSTAL ADDRESS: 12-20 Railway Rd Subiaco 6008 Western Australia
ABN 26 009 448 980 • TELEPHONE: (08) 9388 1551 FAX: (08) 9381 5317 E-MAIL: [email protected]