The Company has announced a fully underwritten 1 for 2 Rights Issue to raise a total of $1.4 million to be used predominanty to recommence exploration drilling at the Drummond Gold Project and potentially undertake exploration activities at the Mylo-Frontier Pilbara Gold Project following completion of due diligence

Fully underwritten Rights Issue to raise $1.4 million

Andromeda Metals has announced a fully underwritten 1 for 2 non-renounceable Rights Issue to raise $1.4 million on the same terms as the recently completed placement, resulting in a total aggregate capital raising of approximately $2.0 million.

Eligible Shareholders will be offered a total of 283,225,752 fully paid ordinary shares at an issue price of $0.005 per share. The New Shares will be offered on the basis of 1 New Share for every 2 Shares held at the Record Date of 14 November 2017. In addition, 1 free attaching Option will be issued for every New Share subscribed under the Offer, with each New Option exerciseable at $0.012 per share and having an expiry date of 30 November 2020.

The Offer price of $0.005 per New Share repesents a 50% discount to the Company's share price on 3 November 2017 and a 57% discount to the volume weighted average price of the Company's shares over the 30 days leading up to the offer annoncement. If the valuation of the attaching New Option is also taken into account, these discounts increase to 89% and 91% respectively.

The Offer is fully underwritten by PAC Partners Pty Ltd.

The net proceeds received from the Offer will be principally directed to funding the following:

  • completing further exploration on the Company's Drummond Epithermal Gold Project, including the first ever testing of identified gold prospects, which includes the large gold-bearing epithermal vein system at the Bunyip prospect;
  • progressing the Mylo-Frontier Pilbara Gold Project tenements to grant and completion of initial exploration programs, subject to a decision to acquire;
  • an initiative to identify, evaluate and acquire new projects to complement the Company's existing portfolio of exploration assets; and
  • meeting on-going exploration and working capital costs and the costs associated with the Offer.

The Board and management may alter the planned use of funds depending upon the results of project due diligence and initial exploration results.

The Offer opens on 17 November 2017 and closes on 30 November 2017 with the New Shares and Options to be allotted on 7 December 2017.

Downloads

Fully underwritten Rights Issue to raise $1.4 million
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Rights Issue Prospectus
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Rights Issue replacement Prospectus
File size: 2 MB | File format: pdf

Overview

Andromeda Metals Limited is an Australian Securities Exchange listed company (code: ADN) focusing on mineral exploration for gold, lithium and copper deposits. Andromeda Metals currently has interests in 21 exploration licenses, covering 7,969 sq kms within South Australia, Queensland, Western Australia and the Northern Territory. Andromeda Metals’ vision is to be a sustainable minerals exploration company providing shareholders with risk managed discovery, development and mining opportunities.

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