AUD1M Equity Funding Facility Draw Down

Rafaella Resources Limited (ASX:RFR) (‘Rafaella’ or the ‘Company’) announces that the Company has elected to draw down the Starboard Global Limited equity placement facility that was made available when the Company agreed terms to acquire the Horden Lake Cu-Ni deposit in Quebec, Canada.

The Company announced on 9 September, as part of its agreed acquisition of the transformative Horden Lake deposit in Quebec, Canada, that it had secured a A$1 million equity placement commitment with Starboard Global Limited and associated co-investors at a 50% premium to the 10-day Rafaella share price Volume Weighted Average Price (‘VWAP’) prior to the acquisition announcement, or A$0.035 per share, whichever was lower.

The Board has elected to draw upon this facility, with the issuance of 28,571,429 shares at the issuance price of $0.035/share, which will be completed within the existing share capacity under ASX listing rule 7.1, following the refreshment of such capacities at the extraordinary general meeting held on 23rd September 2022.

One of the parties subscribing under the Starboard Global Limited facility is Dr Robert Wrixon, a director of both the Company and Starboard Global Limited, and therefore this portion of the share issuance will be subject to subsequent shareholder approval.

The Board, with Dr Wrixon abstaining, considered it important to reduce uncertainty around the acquisition of Horden Lake and that drawing on this facility now, which is at a 7.9% discount to the Company’s most recent closing price of A$0.038 on 26 September, is the prudent course of action, given ongoing market volatility.

It is intended that the funds will be primarily allocated to the remaining acquisition cost of the Horden Lake project, alongside some ongoing working capital commitments, if required.

Managing Director, Steven Turner said: “The facility has been provided by a number of Rafaella’s long term, supportive shareholders and is a testament to the value recognised in the recently announced transformative Holden Lake acquisition. The Company continues to have discussions with other parties regarding additional acquisition and development funding for Horden Lake.”

This announcement has been authorised by the Board of Directors of the Company.

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