Share Purchase Plan Offer Document
Sydney, June 30, 2015 AEST (ABN Newswire) - The Directors of Argent Minerals Limited (
ASX:ARD) are pleased to offer you the opportunity to participate in the Argent Share Purchase Plan ("SPP"), which provides you with the opportunity to increase your shareholding at a discount to the market price and without paying brokerage or other transaction costs, as ARD embarks on its 7 hole 3,200 metre extended reach Kempfield deep diamond drilling program announced on 29 April 2015 targeting high-grade base and precious metals, downhole geophysics surveys for selected Kempfield diamond holes, and a high resolution induced polarisation (IP) geophysics survey at the Company's West Wyalong Project.
SPP Details
The SPP offers eligible shareholders the opportunity to purchase shares in the Company ("New Shares") to a value of A$1,000, A$2,000, A$5,000, $A10,000 or $A15,000.
The SPP is not underwritten and will be capped at a total amount of $1,171,920. An appropriate scale-back policy will be applied if valid applications exceed $1,171,920.
The offer price for the New Shares will be $0.022 per New Share. This represents a 6% discount to the volume weighted average price of ARD shares for the five days on which the sale of ARD shares were recorded prior to the announcement of the SPP of $0.023. The offer price also represents a 8.4% discount to the last traded price on 29 June 2015 (the day on which trading occurred immediately prior to the opening date of the SPP) of A$0.024.
Any New Shares not subscribed for by eligible shareholders under the SPP will comprise the shortfall ("SPP Shortfall") and may be offered to investors to whom disclosure is not required to be made under section 708 of the Corporations Act (for example, sophisticated, professional and institutional investors) as a separate placement at the discretion of the Directors up the limit permitted resolution by ARD shareholders at the shareholder meeting of the Company to be held on 7 August 2015.
Eligible Shareholders who subscribe for New Shares under the SPP, and investors who subscribe for New Shares under the SPP Shortfall placement, will be allocated one (1) free attaching option ("Attaching Option") for every New Share subscribed for (subject to shareholder approval being obtained for this purpose). The Attaching Options will be exercisable for $0.175 on or before 31 March 2016. It is proposed that the Company will seek to have the Attaching Options quoted on ASX.
The Company has appointed RM Capital Pty Ltd ("RMC") as lead manager for the placement of SPP Shortfall. RMC will be paid a fee of 6% for any SPP Shortfall placed by RMC. The fee is to be paid in cash within 7 days of completion of the placement of the SPP Shortfall. Full details of the mandate between the Company and RMC are set out in Section 4.7A of the Prospectus accompanying this SPP Offer Booklet.
The Company reserves absolute discretion regarding the amount raised under the SPP and the exercise of its rights to accept additional funds or to scale-back applications. Should a scale-back happen, you may be allocated New Shares to a value which is less than the parcel of New Shares you applied for and the difference will be refunded to you.
Funds raised under the SPP will be used to fund the 7 hole extended reach Kempfield deep diamond drilling program announced on 29 April 2015 targeting high-grade base and precious metals, a downhole geophysics surveys for selected Kempfield diamond holes, a high resolution induced polarisation (IP) geophysics survey at the Company's West Wyalong Project and for general working capital purposes. As announced on 9 June 2015, site preparations the Kempfield extended reach deep diamond drilling program have commenced, with preparation completed for the first two holes.
Participation in the SPP is entirely optional and open to shareholders who were holders of fully paid ordinary shares in ARD as at 5pm (WST) on 5 June 2015, and whose registered address is in Australia or New Zealand.
The SPP will open on (and the SPP documents will be despatched to eligible shareholders by) 30 June 2015 and will remain open until 5pm (WST) on 10 August 2015. As soon as practicable after the close of the SPP, the Company will make an announcement as to the outcome of the SPP and the number of New Shares and Attaching Option to be issued.
For legal reasons, the offer of New Shares under the SPP, and the offer of Attaching Options are made under the following separate offer documents (enclosed):
- SPP Offer Booklet;
- Prospectus for Attaching Options ("Prospectus"); and
- Combined application form for New Shares and Attaching Options.
These documents are important and should be read thoroughly in conjunction with the publicly available information relating to the Company. If you are unsure about whether to participate in the SPP, please contact your professional advisors. If you require further information, please contact the Company Secretary (contact details are in the enclosed instructions).
The total number of New Shares and Attaching Options that will be issued pursuant to each of the various subscription amounts are set out in the link below.
Placement
In addition to the SPP, as announced on 18 June 2015, the Company has raised approximately $525,500 by way of a placement to sophisticated and professional investors on the same terms as the SPP ("Placement"), namely, by the issue of Shares at an issue price of $0.022 per Share and a free attaching Option on the basis of one attaching Option for every Share subscribed for under the Placement, such attaching Options to be issued subject to shareholder approval being obtained for this purpose at the shareholder meeting to be held on 7 August 2015.
Funds raised under the Placement will be used for the same purpose as the funds raised under the SPP.
Shareholder Meeting
A shareholder meeting will be held on 7 August 2015 to allow shareholders to consider resolutions in relation to (amongst other things) approval for the issue of the Attaching Options under the SPP, placement of Shortfall, the participation of directors of the Company in the issue of Attaching Options as well as other matters associated with the Placement.
* The Company may change any of the Key Dates at its discretion (even if the offer has opened or applications have been received).
To view the SPP Offer, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ARD-724720.pdf
To view the Argent Minerals Options Issue Prospectus, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ARD-724721.pdf
About Argent Minerals Limited
Argent Minerals Limited (
ASX:ARD) is an Australian publicly listed company with a 100% interest in a silver/gold project at Kempfield NSW. Work is underway on the preparation of an EIS and a feasibility study for the first stage of the project which will involve heap leaching some 8.8 million tonnes of mainly oxide and transitional material to produce over 9.5 million ounces of silver and 15,000 ounces of gold over a 5 year mine life. Argent is also earning up to a 70% interest in two other NSW projects - gold at West Wyalong and base metals at Sunny Corner.
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