RED HAWK MINING LIMITED 19 November 2014
Placement and Share Purchase Plan Pilbara Iron Ore Project
Western
Australia
highlights• Placement to raise $4.7m at $0.015
• Todd Corporation Limited to make significant investment via placement
• Share Purchase plan to be conducted on same terms to raise up to $2.0m
Placement
The Directors of Flinders Mines Limited (ASX:FMS)
are pleased to announce a capital raising of up to
$6.7 million comprising:
• A placement ("Placement") of approximately
313.3 million fully paid ordinary shares at $0.015 per share to raise approximately A$4.7 million; and
• A share purchase plan ("SPP") at $0.015 per
share to raise up to $2.0 million via the issue of up to approximately 133.3 million fully paid ordinary shares
The Placement is being made to sophisticated and professional investors under the Company's existing
15% placement capacity so shareholder approval for the proposed issue will not be required nor sought. The issue will not be to a class of security holders.
Settlement of the Placement is expected to occur on or around Tuesday, 25 November, 2014. New shares issued under the Placement will rank equally with existing shares in Flinders.
In particular, Flinders would like to thank Tio (NZ) Limited ("Todd"), a subsidiary of New Zealand based Todd Corporation Limited, for their continued support of the Pilbara Iron Ore Project via their firm placement commitment of approximately $4.5m in what is a difficult market for junior developers.
Flinders has agreed that Todd Corporation, whilst they maintain a shareholding of at least 19%, shall have
the right, subject to consultation, to nominate and have appointed a person to the Board of Directors of Flinders. Appointment of such person shall be subject to the requirements of the Company's constitution and the Corporations Act.
Share Purchase Plan
The Company is pleased to offer its eligible shareholders the opportunity to each acquire up to a maximum of $15,000 worth of new fully paid ordinary shares at an issue price of $0.015 per share, free of all brokerage and commissions.
The right to participate in the SPP is available to shareholders who were registered as holders of Flinders shares at 6:30PM Adelaide time on Tuesday,
18 November, 2014 and who have a registered address in Australia or New Zealand ("Eligible Shareholders").
The complete terms and conditions of the SPP will be mailed to all Eligible Shareholders on or about Tuesday, 25 November, 2014. Shareholders are urged to read the SPP terms and conditions in their entirety before deciding whether to participate in the SPP
and, if in doubt, to seek advice from their professional
advisor.
Flinders Mines Limited ABN 46 091 118 044 www.flindersmines.com
Level 1, 135 Fullarton Road
Rose Park
South Australia 5067
PO Box 4031
Norwood South
South Australia 5067
telephone +61 8 8132 7950 facsimile +61 8 8132 7999 email info@flindersmines.com
Indicative SPP Timetable
Event | Date |
SPP Record Date | 18 November 2014 |
SPP Announced | 19 November 2014 |
SPP Opening Date and Despatch of Offer Documentation | 25 November 2014 |
SPP Closing Date | 12 December 2014 |
SPP Results Announced | 17 December 2014 |
SPP Shares Issued | 19 December 2014 |
Quotation of New Shares | 22 December 2014 |
This timetable is indicative and subject to change. Flinders reserves the right to vary the timetable without notice. The commencement of trading of new shares is subject to confirmation from the ASX.
Use of Funds
The Placement and SPP will allow the Company to complete its Bankable Feasibility Study "BFS" for the Pilbara Iron Ore Project "PIOP" and then make a Final Investment Decision.
Flinders has completed an extensive infill drilling program on the PIOP over the past six months and
is currently finalising a new global resource estimate for the project. Once this has been completed, mine planning, plant design and feasibility studies will be completed for the resource.
IAN GORDON
MANAGING DIRECTOR
19 November 2014
For further information please contact:Ian Gordon
Managing Director
Ph: (08) 8132 7950
Email: info@flindersmines.com
Investor RelationsDuncan Gordon
Executive Director - Adelaide Equity Partners
Ph: (08) 8232 8800 or 0404 006 444
Email: dgordon@adelaideequity.com.au
Head Office
Level 1, 135 Fullarton Road
Rose Park
South Australia 5067
PO Box 4031
Norwood South
South Australia 5067
Ph: (08) 8132 7950
Fax: (08) 8132 7999
Email: info@flindersmines.com
www.flindersmines.com
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