Andromeda Metals has announced an attractively priced pro-rata non-renounceable Rights Issue to provide funding to advance the Company's Eyre Peninsula and Drummond Gold Projects.

Rights Issue to progress Gold Projects

Andormeda Metals has announced a non-renounceable entitlement issue at an issue price of $0.008 per Share on the basis of 1 New Share for every 2 Shares held on the Record Date of 20 April 2017 to raise up to $1.623 million before expenses to advance the Company's gold projects in South Australia and North Queensland.

As part of the Offer to shareholders, the Company is providing free "piggy-back" Options attached to the New Shares subscribed. A Primary Option exercisable at $0.012 and having an expiry date of 31 March 2018 will be issued for every 2 New Shares subscribed. For every Primary Option exercised before the expiry date, the Option holder will receive 1 ordinary share and a further Secondary Option with an exercise price of $0.015 and an expiry date of 31 March 2019.

The offer price of $0.008 represents a 20% discount to the Company's closing price on 10 April 2017 and a 28% discount to the volume weighted average price of the Company's shares over the 30 days leading up to the Offer announcement. If the valuation of the attaching Primary Option is also taken into account, these increase to indicative discounts of 40% and 45% respectively.

The Offer opens on 26 April 2017 and closes on 16 May 2017, with the issue of New Shares and Primary Options to occur on 23 May 2017.

It is proposed that the funds raised will be principally used to conduct drilling, metallurgical and feasibility studies to progress the Wudinna Gold Camp on the Eyre Peninsula towards mine development, and to complete maiden drill tests of gold-bearing epithermal veins in the Drummond Basin.

Downloads

Rights Issue to progress Gold Projects
File size: 165 KB | File format: pdf


Rights Issue Prospectus
File size: 5 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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