Reach Resources

Updated Rights Issue and Options Priority Offer

Reach Resources Limited (ASX: RR1 & RR1O) (“Reach” or “the Company”) is pleased to announce its intention to undertake a non-renounceable rights issue of 1 fully paid ordinary share in the capital of the Company (“Share”) for every 3 Shares held by eligible shareholders at an issue price of $0.002 per Share (pre-consolidation) or $0.01 (post-consolidation), together with 1 free attaching option to acquire a Share (“Option”) for every 2 Shares subscribed for and issued, to raise up to approximately $2.14 million (“Rights Issue”).


Each Option issued under the Rights Issue will be exercisable within 3 years from the date of issue with an exercise price of $0.003 (pre-consolidation) or $0.015 (post consolidation) (“New Options”).

In addition to the Rights Issue, the Company will be offering eligible holders of the existing RR1O listed Options (“RR1O Options”) a non-renounceable priority offer to subscribe for 1 New Option for every 1 RR1O held at an issue price of $0.0002 (pre-consolidation) or $0.001 (post-consolidation) per New Option to raise up to approximately a further $0.26 million (“Priority Offer”). The issue of the New Options under the Priority Offer will be subject to shareholder approval and will occur following the consolidation (which is further discussed below).

The Company intends to apply for the quotation of the New Options to be issued under the Rights Issue and the Priority Offer (together, the “Offers”).

Funds raised under the Offers will be allocated towards funding the exploration of the Company’s projects and for general working capital purposes.

The Company has engaged Westar Capital Limited (AFSL 255789) (“Westar”) to act as lead manager for the Offers. In consultation with the Company, Westar will have the exclusive right to the placement of any shortfall.

The Company intends to release a prospectus for the Rights Issue to its ASX platform on Friday, 1 March 2024 (“Rights Issue Prospectus”) following the lodgement of the Rights Issue Prospectus with ASIC. A prospectus for the Priority Offer (“Priority Offer Prospectus”) will be lodged with ASIC following the completion of the consolidation (which is further discussed below).

Eligible shareholders should consider the Rights Issue Prospectus in deciding whether to acquire securities under the Rights Issue and will need to complete the personalised entitlement and acceptance form that will accompany the Priority Offer Prospectus.

The Company advises that, should they be eligible, the Directors intend to take up any entitlements available to them under the Offers. As at the date of this announcement, the Directors are not eligible to participate in the Offers.

Lead Manager Fees

Pursuant to the Company’s lead manager mandate with Westar, the Company has agreed to pay Westar:

  • (a) a 6% fee on the gross proceeds raised under the Offers; and
  • (b) a $35,000 signing fee.

Consolidation

Subject to receipt of shareholder approval at the Company’s upcoming General Meeting to be held early April 2024, the Company plans to consolidate its issued capital on a 1 for 5 basis (“Consolidation”). The Consolidation will become effective post the issue of Securities under the Rights Issue.

The Consolidation will apply equally to all shareholders, individual shareholdings will be reduced in the same ratio as the total number of shares (subject to rounding of fractions). The Consolidation will have no material effect on the percentage interest in the Company of each shareholder from a pre- consolidation basis to a post-consolidation basis. All references in this announcement are on a pre- consolidation basis.

Shareholders will be given the opportunity to vote on this at a General Meeting with more details to be provided in the associated Notice of Meeting.

The indicative timetable for the Offers and Consolidation is set out at Annexure 1. As is further set out in this timetable, the Priority Offer will be undertaken following the completion of the Consolidation. This is not what was originally envisaged when the Company announced the Priority Offer by way of the Appendix 3B that was released on 19 February 2024 (“Original 3B”). It is for this reason that the Original 3B has been cancelled, and will be replaced in due course by a revised Appendix 3B.


Click here for the full ASX Release

This article includes content from Reach Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

RR1:AU
Reach Resources Limited

Reach Resources Limited Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Reach Resources Limited

Reach Resources Limited


Keep reading...Show less
Reach Resources

Quarterly Activities/Appendix 5B Cash Flow Report

Reach Resources Limited (ASX: RR1) (“Reach” or “the Company”) provides its activities report for the quarter ended 30 June 2023.

Keep reading...Show less
Reach Resources

Outcropping Copper Gossan Delivers 33% Cu Assays At Morrissey Hill Project, Yinnetharra

Reach Resources Limited (ASX: RR1 & RR1O) (“Reach” or “the Company”) is pleased to announce that it has received high grade copper, gold and silver results up to 33% copper, 0.2g/t gold and 142g/t silver from its recently completed rock chip sampling program at the Company’s Morrissey Hill Project, Yinnetharra, W. A (Refer to Figure 4).

Keep reading...Show less
Reach Resources

Reach Resources’ Strategic Position Between Two of WA’s Mining Heavyweights

Reach Resources’ (ASX:RR1) strategic position with its Morrissey Hill project has placed the critical mineral explorer on the radar of two of Western Australia’s mining giants Delta Lithium (ASX:DLI) and Minerals 260 (ASX:MI6), according to an article published in The West Australian.

Keep reading...Show less
Reach Resources

Multiple New Lithium (LCT) Pegmatite Targets Confirmed

Reach Resources Limited (ASX: RR1 & RR1O) (“Reach” or “the Company”) engaged globally renowned geological consultants RSC Consultants Limited (RSC) to assess the potential of the Company’s Gascoyne projects for:

  • Lithium (Li): hard rock, high grade LCT Pegmatites
  • Rare Earth Elements, Heavy and Light (HREE; LREE): clay/hard rock hosted
  • Manganese (Mn): high grade strata bound, supergene, and• Precious and base metals (Au; Ag; Cu-Pb-Zn)
Keep reading...Show less
Auric Mining

First Parcel of Ore for 2024 to be Processed Mid-April

Auric Mining Limited (ASX: AWJ) (Auric or the Company) is pleased to announce that mining operations at the Jeffreys Find Gold Mine (the Project) near Norseman, WA, is proceeding smoothly on an around-the-clock basis.

Keep reading...Show less
Firebird Metals (ASX:FRB)

Firebird Metals’ Integrated Strategy Well-placed in Booming LMFP Batteries Market, Analyst Says

Description

The growing demand for high-purity manganese sulphate monohydrate (HPMSM) used in lithium manganese iron phosphate (LMFP) batteries positions Firebird Metals (ASX:FRB) to become significant player in the manganese market for LMFP batteries and EV manufacturers, according to an analyst report published by Terra Studio.

“Compared to its peers, Firebird Metals and its Hunan high-purity manganese sulphate monohydrate project accumulate a number of enviable characteristics: lowest capital expenditure; lowest capital intensity; life of project not limited by a mineral resource; lowest operating cost; highest profitability index (NPV/capex) with the lowest HPMSM price assumption; best expertise in lithium-ion batteries and in particular LFP and

Keep reading...Show less
Auric Mining (ASX:AWJ)

Auric Well-funded for Stage 2 Mining at Jeffreys Find After $4.7M Cash from Phase 1

First parcel of ore is expected by mid-April 2024

Auric Mining Limited (ASX:AWJ) is cashed up for the second round of mining at Jeffreys Find in Western Australia after Phase 1 generated more than $4.7 million in free cash, according to an article published in The Sydney Morning Herald.

Keep reading...Show less
Hand holding icon that says "AI."

Unearthing Efficiency: How the Mining Industry is Using AI to Make Data-driven Discoveries

Since OpenAI launched ChatGPT to the public in November 2022, artificial intelligence (AI) has exploded into the mainstream, turning into a gold mine for companies that have become early adopters.

What are the implications of AI for the mining sector? Can AI help revitalize investment in the chronically underfunded exploration stage? Can it provide the tools companies need to improve operational efficiency?

This year at the Prospectors & Developers Association of Canada (PDAC) convention, AI and machine learning were broadly featured in several presentations, with participants aiming to answer those and other questions, as well as provide insight into how AI is being deployed and what it means for the future of the mining industry.

Keep reading...Show less
Person typing on laptop with ESG icons floating above.

ESG Now the "Price of Admission" for Miners as Investors Seek Responsible Companies

In today's rapidly evolving investment landscape, the spotlight isn't just on financial returns; it's also on environmental sustainability, social responsibility and governance — better known as ESG.

According to a 2021 report from Accenture Global (NYSE:ACN), 59 percent of investors want miners to aggressively pursue decarbonization and be market leaders in that effort. The report, titled "Global Institutional Investor Study of ESG in Mining," was based on responses from 200 public and private institutional investment firms from around the world.

On a similar note, 63 percent of respondents said they would be willing to divest from or avoid investing in mining companies that fail to meet their decarbonization targets or don't pursue decarbonization aggressively enough.

Keep reading...Show less
Marquee Resources

Spodumene Bearing Pegmatite Swarm Mapped with Samples up to 3.01% Li20 – West Spargoville Project

Marquee Resources Limited (“Marquee” or “the Company”) (ASX:MQR) is pleased to provide an update of ongoing exploration and targeting activities at the West Spargoville Project (“WSP” or “The Project”). Recently, Company geologists completed further mapping and sampling to better define targets for the planned upcoming drilling programmes. Leveraging off previously acquired geochemical, geophysical and drilling data, the Company has identified a pegmatite swarm with over 40 fertile pegmatites identified with mapping, sampling and portable-XRF (p-XRF) analysis confirming the presence of spodumene in 10 of the individual pegmatites (Figure 2). The recent sampling returned a best rock chip assay of 3.01% Li2O (24WS0010) with numerous results >1% Li2O (Table 1). The Company continues to collaborate closely with Joint Venture Partner Mineral Resources Limited (ASX:MIN) regarding all facets of the WSP Project and the ongoing 2024 exploration campaign.

Keep reading...Show less
Reach Resources Limited

Reach Resources Limited Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×