Placement and Fully Underwritten Rights Issue
Placement and Fully Underwritten Rights Issue
Adelaide, Nov 19, 2018 AEST (ABN Newswire) - Mithril Resources Ltd ("Mithril" or the "Company") (ASX:MTH) is pleased to advise that it is conducting a capital raising comprising a Placement and a subsequent fully underwritten non-renounceable pro-rata rights issue ("Rights Issue") to be offered to eligible shareholders to raise a total of $1,110,231 (before costs).

- Placement raises $150,257 with subsequent Fully Underwritten Rights Issue to raise a further $959,974 for a total of $1,110,231 (before costs)

- Funds raised will be used to advance priority zinc and nickel targets at the Billy Hills and Kurnalpi Projects, support ongoing target generation activities and for working capital purposes

- Directors will take up their full entitlement under the Rights Issue.

Patersons Securities Ltd ("Patersons") is acting as Lead Manager to the Placement and Rights Issue and Underwriter to the Rights Issue.

The Company has received firm commitments to raise $150,257 through the share placement ("Placement") pursuant to Section 708 of the Corporations Act (Cth) at an issue price of $0.005 (0.5 cents) per new share.

The Rights Issue is to be offered to eligible shareholders to raise up to a further $959,974 at the same price as the Placement and is fully underwritten by Patersons Securities Ltd ("Patersons").

All Directors will take up their full entitlement under the Rights Issue.

Funds raised by the Placement and Rights Issue will be used to advance priority zinc and nickel targets at the Billy Hills and Kurnalpi Projects respectively, support ongoing target generation activities and for working capital purposes.

Placement Details

The Placement will raise $150,257 through the issue of 30,051,357 fully paid ordinary shares at $0.005 (0.5 cents) per share and was made to sophisticated investors eligible under section 708 of the Corporations Act (Cth).

The issue price of $0.005 (0.5 cents) represents a 28.5% discount to the last traded price of 0.7 cents and a 25.4% discount to the 15-day trading VWAP of 0.67 cents up to and including the day before the issue price was determined (14 November 2018).

The placement shares will be issued in accordance with the Company's available 15% placement capacity, with 30,051,357 shares issued pursuant to ASX Listing Rule 7.1. The new shares will rank equally with existing Mithril ordinary shares quoted on the ASX.

Rights Issue Details

Following completion of the Placement, the Company will undertake a pro-rata non-renounceable Rights Issue to raise up to $959,974.

Each shareholder registered on the Company's register of members at 7.00 pm (Adelaide time) on 22 November 2018 ("Record Date") will be eligible to subscribe for five new fully paid ordinary share in the Company for every six ordinary shares held as at the Record Date at a price of $0.005 (0.5 cents) per new share.

Please note that the Company's shares will be quoted on an 'ex' basis from 21 November 2018, and therefore any of the Company's shares bought on market on and after this date will not be entitled to participate in the Rights Issue.

In addition to being able to apply for new shares under the Rights Issue, eligible shareholders who take up their full entitlement under the Rights Issue will also have the opportunity to apply for additional new shares that are not subscribed for under the Rights Issue.

The Rights Issue is fully underwritten by Patersons and all Directors will take up their full entitlement under the Rights Issue.

The indicative timetable for the Rights Issue is as follows:

Event: Date of Lodgement of Prospectus with ASIC and ASX
Date: 19 November 2018

Event: Notice of Rights Issue sent to Shareholders
Date: 20 November 2018

Event: Existing Shares quoted ex-rights
Date: 21 November 2018

Event: Record Date to determine Entitlements under Rights Issue
Date: 22 November 2018

Event: Prospectus with Entitlement and Acceptance Form dispatched to Eligible Shareholders and Acceptances Open
Date: 27 November 2018

Event: Closing Date for acceptances
Date: 13 December 2018

Event: New Shares are quoted for ASX trading on a deferred settlement basis
Date: 14 December 2018

Event: Company notifies ASX of under subscriptions
Date: 18 December 2018

Event: Issue of New Shares and dispatch of holding statements
Date: 20 December 2018

Event: Expected date for commencement of normal trading of New Shares on ASX
Date: 21 December 2018

The timetable is indicative only and the Company reserves the right to vary it at any time without prior notice subject to the ASX Listing Rules and the Corporations Act 2001 (Cth).

Full details of the Rights Issue will be contained in the Prospectus to be lodged with ASIC and ASX and to be dispatched to eligible shareholders in accordance with the timetable set out above.

The Board looks forward to shareholder support of the Rights Issue.

To view the Rights Issue Prospectus, please visit:
http://abnnewswire.net/lnk/YOW9QDSY


About Mithril Resources Limited

Mithril ResourcesMithril Resources Limited (ASX:MTH) is an Australian resources company whose objective is the creation of shareholder wealth through the discovery of mineral deposits.

The Company and its exploration partners are actively exploring throughout the Kalgoorlie, West Kimberley and Murchison Districts of Western Australia for economic nickel, copper, zinc, and vanadium deposits.

In the Kalgoorlie District, Mithril is exploring for nickel on the Kurnalpi, Lignum Dam and North Scotia Projects which lie along strike from, or adjacent to previously mined high-grade nickel at the Silver Swan and Scotia Nickel Deposits.

In the West Kimberley, Mithril is exploring for zinc on the Billy Hills Project which lies adjacent to the previously mined Pillara Zinc Deposit.

In the Murchison, Mithril is exploring for copper, nickel and zinc mineralisation on the Nanadie Well Project and for copper, silver, zinc and lead on the Bangemall Base Metal Project. Mithril's exploration partner – Monax Mining Ltd is also exploring for vanadium on the Limestone Well tenements.

   


Contact

Mithril Resources Ltd
David Hutton
Managing Director
E: admin@mithrilresources.com.au
T: +61-8-8132-8800
F: +61-8-8132-8899
www.mithrilresources.com.au



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