Eastern Metals (ASX:EMS) has announced its plans to undertake a non-renounceable entitlement offer seeking to raise about $1.4 million to expedite rare earths exploration at the Currawalla mine within its Tara Project in New South Wales.
Under the entitlement offer, the company reports all eligible shareholders are being offered the opportunity to apply for 1 new share for every 2 shares held on the record date at an issue price of $0.05 per new share to raise under $1.372 million.
The company says the entitlement offer will include a free unlisted new option for every 2 new shares acquired, exercisable at $0.10 and expiring 3 years after the closing date unless previously exercised.
Eastern Metals notes the offer represents a 29.6% discount to the $0.071 last price and a 20.4% discount to the 30-day volume weighted average price (VWAP) of company shares on 4 May 2023.
The company predicts that about 27.45 million new shares and 13.73 million new options will be issued as part of the entitlement issue, with new shares issued under the entitlement issue being ranked equally with existing shares.
Additionally, Eastern Metals announces the entitlement offer is non-renounceable and will not be tradeable on the ASX or otherwise transferable. Veritas Securities will act as Lead Manager to the entitlement issue, which is not underwritten.
The company also notes eligible shareholders will be invited to participate in the entitlement issue, which will open 15 May 2023 and close at 5pm (AEST) on 2 June 2023.
Eligible shareholders can also apply for additional shares in the entitlement issue pool of those not taken up by other eligible shareholders under a top-up facility
Eligible shareholders can also apply for additional shares in the entitlement issue pool of those not taken up by other eligible shareholders under a top-up facility.
With the entitlement offer scheduled to open on 15 May, Eastern Metals announces it has lodged the entitlement issue prospectus with the Australian Securities Exchange (ASX) and Australian Securities and Investments Commission (ASIC) today (5 May 2023).
Eastern Metals is an ASX-listed exploration company focused on developing its 3 key projects located in the Northern Territory and New South Wales. The company’s Tara project represents the northernmost licence held by Eastern Metals in the Cobar Basin in New South Wales, about 120km south of the township of Cobar.
The project comprises 122 graticular units and covers a land area of about 352km-square. Tara is also host to the Currawalla Mine, located in the southernmost corner of the tenement and coincident with a discrete aeromagnetic anomaly.
Images: Eastern Metals Ltd
