7 October 2016
ASX ANNOUNCEMENT Flinders to undertake a 1:10 Non-renounceable Entitlement Offer to raise A$5MFlinders Mines Limited (ASX: FMS) (Flinders) is pleased to announce a non-renounceable entitlement offer (Entitlement Offer or Offer) at A$0.017 (1.7 cents) per share to raise approximately A$5 million.
The Entitlement Offer will be an offer of approximately 295 million new fully paid ordinary shares in the Company (New Shares) on the basis of 1 New Share for every 10 existing shares held by eligible shareholders on the Record Date (Entitlement). The offer price is a discount of approximately 32% to the 30-day volume weighted average price of Flinders shares on the ASX for the period ending 30 September 2016.
Only holders of shares in the Company with a registered address in Australia or New Zealand as at
pm (AEST) on Wednesday, 12 October 2016 will be eligible to participate in the Entitlement Offer.
The Offer Booklet will be lodged with the ASX on 7 October 2016 and will be sent to eligible shareholders together with a personalised Entitlement and Acceptance Form on 17 October 2016.
The Entitlement Offer is not underwritten. There is no shortfall facility as part of the Offer. Neither eligible shareholders nor any other parties may apply for shortfall shares.
Use of ProceedsThe Company will use the funds raised under the Entitlement Offer to:
repay the loan (including interest) from PIO Mines Pty Ltd (a subsidiary of TIO (NZ) Limited);
meet minimum tenement expenditure commitments for PIOP for the next 12 months;
meet the cost of the reviews proposed by TIO in sections 7.3(d), (e), and (f) of the Original Bidder's Statement dated 17 March 2016 (if implemented); and
provide working capital to the Company.
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Indicative TimetableThe proposed timetable for the Entitlement Offer is set out in Table 1. All dates are indicative only and the Company reserves the right to vary them (subject to the Corporations Act and the ASX Listing Rules).
Table 1 Indicative Timetable*1. | ASX Announcement of Entitlement Offer | Friday, 7 October 2016 |
2. | Entitlement Offer Record Date | Wednesday, 12 October 2016 |
3. | Entitlement Offer Opens and Offer Booklet dispatched | Monday, 17 October 2016 |
4. | Entitlement Offer Closes | Friday, 4 November 2016 |
5. | ASX Notified of under subscriptions | Wednesday, 9 November 2016 |
6. | Issue date for New Shares | Friday, 11 November 2016 |
7. | Trading of New Shares commences | Monday, 14 November 2016 |
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
Flinders Mines Limited published this content on 07 October 2016 and is solely responsible for the information contained herein.
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