Pursuit Secures Funding for $1 Million of Convertible Loan Notes

Pursuit Minerals Ltd (ASX: PUR) (“PUR”, “Pursuit” or the “Company”) is pleased to announce that it has entered into commitment letters that will secure $1 million in immediate funding for Pursuit through the issue of Loan Notes totalling (“Loan Notes”) to Pursuit. The Loan Notes will automatically convert into shares and options, subject to shareholder approval to be sought at the Company’s annual general meeting on 28 November 2024 (“AGM”).

HIGHLIGHTS

• Pursuit has mandated Alpine Capital Pty Ltd (Alpine) to act as Lead Manager in placing $1 million of Convertible Loan Notes.
• Commitment letters for $1 million of loan notes have been received with strong support from existing shareholders and new investors.
• Pursuit has recently completed two diamond drillholes from the Stage 1 Drill Program and is currently targeting resource growth to the existing inferred JORC resource of 251.3kt LCE @ 351mg/Li¹ with resutls expected over the coming weeks.
• 250tpa Pilot Plant works continue to progress toward first production of Lithium Carbonate products. Product samples to be sent to prospective off-take partners.
• Following Rio Tinto and BHP spending >$13.2 billion on Lithium and Copper projects in Argentina throughout 2024, Pursuit continues to review potential value creating acquisitions complementary to the Rio Grande Sur Project.

The principal terms of the Loan Notes are set out below.

Proceeds from the Loan Notes will be principally used by the Company to fund the ongoing works at the Rio Grande Sur Project. In particular, the Company intends to apply the funds to progressing towards first production of Lithium Carbonate from its 250tpa plant in Salta, feasibility studies for the larger commercial operation and assessment of complementary acquisitions opportunities in the critical metals’ asset classes of Lithium and Copper.

Pursuit has proceeded with this relatively small raising with a view to securing sufficient funding to enable the Company to finalise significant value creating events over the coming months, including final assay results from the DDH-2 drill hole and an expected material resource upgrade at the Rio Grande Sur Lithium Project.

Importantly, the Company’s cash burn over the next 6 to 9 months is anticipated to be significantly lower than the last 6 to 9 months following drilling activities having ceased and crews demobilised from the Rio Grande Sur Project.

In a show of support for the Company, Pursuit Chairman, Mr Peter Wall, has agreed to subscribe for Loan Notes with an aggregate face value of $30,000 (subject to shareholder approval at the AGM).

Managing Director & CEO Aaron Revelle commented, “The past months have been a transformational period for the Company as we have completed the first two diamond drill holes at the Rio Grande Sur Project. With lithium intercepts at grades above 600mg/L at DDH-1 and 500mg/L at DDH-2, the project continues to exceed expectations with potential scale.”

Following on from this success, we continue to advance our 250tpa Lithium Carbonate plant towards first production with a now significantly reduced cash burn and capital commitments lower than previous quarters. Achieving this milestone places Pursuit well in its ability to move toward a small-scale continuous operation at Rio Grande, which we believe will be viewed favourably in the heightened M&A climate in the Lithium sector.”

As the global search for new copper and critical metals discoveries intensifies, we continue to evaluate potential acquisition opportunities in both Lithium and Copper following Argentina being further validated by major miners BHP and Rio Tinto with BHP’s USD $2.1 billion acquisition of Copper assets and Rio Tinto’s USD $6.7 billion acquisition of Arcadium Lithium. Both companies are continuing to develop these projects, highlighting the potential for world-class discoveries and mines in Argentina only further complemented by the RIGI legislation implemented by the Milei Government.”

We would like to thank our existing shareholders and appreciate the support of the new Loan Note holders."

In addition, pursuant to section 254H of the Corporations Act, the Company intends to undertake a consolidation of capital of the company at a ratio of 50:1 ("Consolidation"), subject to receipt of shareholder approval at the AGM to be held at the updated time of 10am on Thursday, 28th November 2024. The consolidation will apply to all Shares, Options, Performance Rights and Performance Shares issued by the Company. Where this Consolidation results in a fraction of a Security being held, the Company will be authorised to round that fraction up to the nearest whole number.

The Consolidation is proposed by the Company to reduce its total issued capital to a more appropriate and effective capital structure and a resultant share price that is more appealing to a wider range of investors.

In accordance with Listing Rule 7.21 and 7.22 all Convertible Notes, Performance Rights and Options currently on issue by the Company be consolidated in the same ratio as Shares. The exercise price of the Convertible Notes, Performance Rights and Options will be amended in accordance with the ASX Listing Rules.

An anticipated timetable for the Consolidation is set out at the end of this announcement. Further details on the Consolidation, including the information required to be provided to shareholders of the Company under the Corporations Act 2001 (Cth) and the ASX Listing Rules will be set out in the notice of meeting.

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