ASX Announcement
14 April 2016
Dear Shareholder
Rights Issue
On 13 April 2016, Maximus Resources Limited (MXR) announced a two-for-five non- renounceable rights issue (Rights Issue).
The Rights Issue seeks to raise approximately $1.61 million (before costs) through the issue of approximately 538 million new fully paid ordinary shares in MXR.
Use of Funds
The funds raised by the Rights Issue, together with Maximus' existing cash reserves, will be used to fund ongoing exploraiton and development, including:
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Wattle Dam exploration including soil sampling, drilling and resource analysis
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Narndee ground IP Survey and RC drill testing of targets
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Further Lithium investigation and analysis, and
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working capital purposes.
Details of the Rights Issue
MXR shareholders with registered addresses in Australia or New Zealand at 7.00 pm (AEST) on 18thApril 2016 (Record Date) will be eligible to participate in the Rights Issue (Eligible Shareholders). All other overseas registered shareholders will not be eligible to participate.
Each Eligible Shareholder will be entitled to subscribe for two new ordinary shares in the capital of MXR for every five ordinary shares registered in their name on the Record Date. The new ordinary shares will be issued at a cost of $0.003 per share (New Shares). Persons who apply for New Shares will receive one free Attaching Option for every New Share for which they apply. The options will have an exercise price of $0.006, with an expiration date of 31 May 2017. The options will not be quoted on the ASX.
The Rights Issue is not underwritten. The directors reserve the right to place the remaining shortfall at their discretion within three months after the close of the offer. Eligible Shareholders' entitlements pursuant to this Rights Issue are non-renounceable and accordingly Eligible Shareholders may:
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take up their rights in full or in part;
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do nothing in which case their rights will lapse; or
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take up their rights in full and apply for additional new shares.
Full details of the Rights Issue are set out in the Prospectus dated 13thApril 2016, which was lodged with the ASIC and ASX on that date. The Prospectus together with an Entitlement and Acceptance Form will be mailed to all Eligible Shareholders on 21st April 2016. A copy of the Prospectus is available through the ASX website.
Key dates
Key dates which shareholders should note are as follows:
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Prospectus and Appendix 3B lodged with ASIC and ASX
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13 April 2016
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Replacement Prospectus and Appendix 3B lodged with ASIC and ASX
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14 April 2016
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Notice of Offer sent to Shareholders
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14 April 2016
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Shares quoted on an 'ex' basis
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15 April 2016
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Record Date
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7.00pm (AEST) 18 April 2016
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Despatch of Rights Issue Documents to Eligible Shareholders Offer Period Opens
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21 April 2016
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Offer Period Closes
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9 May 2016
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Shares quoted on a deferred settlement basis
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10 May 2016
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Notification of under-subscriptions to ASX (if any)
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12 May 2016
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New Shares entered into Shareholders' security holdings - Allotment date
Deferred settlement trading ends
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16 May 2016
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Trading of New Shares on ASX commences
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17 May 2016
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These dates are indicative only and, subject to the Corporations Act 2001 and the ASX Listing Rules, may be varied as the directors decide.
Applications for new ordinary shares under the Rights Issue may only be made by following the instructions carefully and completing the Entitlement and Acceptance Form which accompanies the Prospectus. Eligible Shareholders should read the prospectus carefully. For further information on the Rights Issue, you should contact your professional advisor.
I look forward to your ongoing support of the company as we continue to focus our exploration commitments on the multiple Spargoville gold prospects and Lithium potential and Narndee base metal pursuits.
Yours faithfully
Kevin Malaxos
Managing Director Maximus Resources Ltd