15 July 2009
$12.16 Million Capital Raising
Highlights
? $9.16m placement of ordinary shares
at $0.21 per share
? Up to $3.0m Share Purchase Plan
offered at $0.21 per share to shareholders
? Participants in the Placement and
Share Purchase Plan will receive one free option for each new share
subscribed
? Funding to continue the development
of EMA?s Mulga Rock Uranium deposits and to provide working capital
Energy and Minerals Australia Limited
(ASX: EMA), a Western Australian focused uranium company, is
pleased to advise that it has secured commitments for a two tranche
Placement to deliver gross proceeds of $9.16 million from institutional and
sophisticated investors.
The Company also intends to raise up to an
additional $3.0 million by implementing a Share Purchase Plan (?SPP?)
which provides eligible shareholders with the opportunity, subject to obtaining
the necessary ASX waivers, to subscribe for EMA shares and options on the same
terms offered under the Placement.
The Placement, lead-managed by Austock
Corporate Finance, was strongly supported and has seen the introduction of a
number of new domestic and offshore institutional shareholders to EMA?s
register.
Use of Funds
As noted above, the net proceeds from the
capital raising will be applied to advance the development of the Mulga
Rock Uranium deposits. Specifically the proceeds will be used for:
? metallurgical drilling and test work
? drilling and resource upgrade of the
Mulga Rock Uranium deposits
? a Scoping Study on the Ambassador
Deposit
? working capital requirements and
tenement package maintenance
EMA Managing Director, Chris Davis commented
that ?funds from the raising will allow EMA to continue development of the
Mulga Rock uranium deposits and reach project milestones. Achievement of
these milestones will place the Company in a strong position to engage
with uranium end-users?.
Placement
The
Placement has been made to institutional and sophisticated investors. The
issue price of shares under the Placement is $0.21 each, representing a 21%
discount to the five day volume weighted average price prior to the Company
entering a trading halt on 13 July 2009.
For each
share subscribed under the Placement, the Company will grant one free option to
acquire one fully paid EMA share at an exercise price of $0.33 per share
and an expiry date of 31 July 2011. The Placement will be
completed in two tranches:
?
Tranche 1 ? comprising
21.8 million shares and 21.8 million options, will be placed immediately using
the Company?s 15% (share and option) placement capacity under
Listing Rule 7.1, raising gross proceeds of approximately
$4.58 million; and
? Tranche 2 ? comprising 21.8 million
shares and 21.8 million options, will be placed, subject to receiving
shareholder approval, to raise gross proceeds of approximately
$4.58 million.
The Company?s major shareholder, Sumico (WA)
Pty Ltd as trustee for the Busani Family Trust, has informed the Company
that it intends to vote its shareholding in favour of the issue of Tranche 2
of the proposed Placement.
A General
Meeting of shareholders will be called to approve the issue of these shares and
options under the Placement, and a Notice of Meeting will be dispatched
shortly.
Share
Purchase Plan (?SPP?)
To ensure that existing eligible shareholders
have the opportunity to participate in this capital raising on the same terms
as the Placement, the Company intends to implement a SPP to raise up
to $3.0 million with the issue of approximately 14.29 million shares
and 14.29 million options. The SPP will not be underwritten.
Under the SPP, each eligible shareholder will
be entitled to subscribe for EMA shares at a price of $0.21 per
share. For each share subscribed under the SPP, the Company will grant
one free option, with an exercise price of $0.33 per share and an expiry date
of 31 July 2011. As noted above, the issue price represents approximately
a 21% discount to the five day volume weighted average price prior to
the Company entering a trading halt on 13 July 2009.
The Company has applied for a waiver of
certain ASX Listing Rules to offer shareholders the opportunity to subscribe up
to the maximum participation limit of $15,000 of new EMA shares, to allow
the SPP to be offered at the same price as under the Placement, and to allow
EMA?s directors to participate. The Company reserves the right to scale
back applications to remain within the $3.0 million limit for the
SPP. The terms and conditions of the SPP will be set out in the SPP offer
documents.
The Company will prepare and issue a
prospectus for the options offered under the SPP. Subject to meeting
regulatory requirements and being granted approval from ASX, the Company will
apply to list the options on the ASX following lodgment of the prospectus.
The
proposed record date for the SPP will be Wednesday 22 July 2009.
Documentation on the SPP will be sent to shareholders shortly.
Chris
Davis
Managing
Director
For further information:
Chris Davis
Managing Director
Tel: (08)
9389 2700
Mob: 0417 902 646
Warrick Hazeldine / Ryan McKinlay
Purple Communications
Tel:
(08) 6314 6300
Mob: 0417 944 616 / 0408
347 282
***
Purple
Communications
Level 3, 28 Kings Park Road, WEST
PERTH
WA 6005
Ph: 08 6314 6300 Fax: 08 6314 6355
purple@purplecom.com.au