BMG Successfully Completes Entitlement Offer

Western Australian focused gold and lithium explorer BMG Resources Limited (ASX: BMG) (Company) is pleased to advise it has raised $1,254,139 (before costs) sought in the Entitlement Offer through the placement of 96,472,171 New Shares at an issue price of $0.013 per New Share – refer ASX announcement of 26 April 2023 ‘BMG to raise up to $2.7m in Placement and Entitlement Issue’).

• BMG’s $2.75 million capital raising now complete.
• $1.25 million targeted in the Entitlement and Shortfall Offers has been raised in full and is in addition to the $1.5m oversubscribed placement conducted prior to the Entitlement Offer.
• BMG is well funded for the next phase of work at the Abercromby Gold Project (11.1Mt @ 1.45 g/t Au for 518koz Au) and to pursue the lithium and gold potential across its Invincible and Bullabulling Projects.
• Assay results from the recent drilling of lithium and gold targets at the Bullabulling Project are expected shortly.

Entitlement and Shortfall Offers

Under the prospectus dated 1 May 2023 (Prospectus), eligible shareholders were able to subscribe for new shares on the basis of one (1) new share (New Shares) for every four (4) shares held by shareholders at an issue price of

$0.013 per New Share to raise approximately $1.25 million before costs, together with an entitlement to receive one (1) attaching option (Attaching Option) for every three (3) New Shares issued (Entitlement Offer). The Attaching Options will be exercisable at $0.025 each on or before 30 September 2024. Eligible shareholders collectively applied for 46,328,828 New Shares (together with 15,443,031 Attaching Options) of their entitlements to raise a total of $602,275 before costs, resulting in a shortfall of 50,169,087 New Shares.

Under the Prospectus, Eligible shareholders were also entitled to apply to participate in the Shortfall Offer and subscribe for New Shares (together with Attaching Options) not applied for under the Entitlement Offer. The Company received applications for a further 32,629,050 New Shares under the Shortfall Offer, and the directors have exercised their discretion to accept applications from eligible investors for 11,681,804 New Shares (together with 3,893,963 Attaching Options) in this regard, raising a further $151,864 before costs.

Accordingly, from the Entitlement Offer and Shortfall Offer to eligible shareholders, the Company raised $754,139 of the $1,254,473 sought under the Entitlement Offer.

Placement of Shortfall

As noted in the Prospectus, the Directors reserved the right, subject to the requirements of the Corporations Act and ASX Listing Rules, to place any shortfall shares within three months after the Closing Date (i.e. by 30 August 2023) at a price not less than the price under the Entitlement Offer ($0.013 per share).

BMG is pleased to advise that it has entered into agreements with new and existing professional and sophisticated investors to place 38,461,539 New Shares (together with 12,820,513 Attaching Options) offered under the Entitlement Offer (‘Shortfall Placement’).

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