ASX/Media Announcement
26 October 2016
Share Purchase Plan
Golden Rim Resources Ltd (ASX: GMR, Golden Rim, Company) is pleased to announce the details of a Share Purchase Plan (Plan), which will be offered to eligible shareholders on or about 3 November 2016.
The Company will offer eligible shareholders the opportunity to participate in the Plan by subscribing for up to $15,000 worth of fully paid ordinary shares in the Company (Shares) (subject to any scale back) at an issue price of $0.008 per Share without having to pay brokerage or other transaction costs (Offer). The Offer to shareholders is at a discount of 13% to the 5 day volume weighted average price of Shares sold on ASX over the last 5 days on which sales in the Shares were recorded. Pursuant to the terms and conditions of the Offer, eligible shareholders will be offered the option to acquire $1,000, $2,500, $5,000, $10,000 or $15,000 worth of Shares.
Pursuant to the Offer, the Company will issue up to a maximum of 225,000,000 Shares which would raise a maximum of $1,800,000. However, should total demand exceed this amount, the Directors reserve the right to accept oversubscriptions (subject to the maximum number of shares the Company can issue under the Offer, which is 30% of the Company's pre-Offer issued capital), or to scale-back applications in their absolute discretion.
The Company intends to use the funds raised under the Offer to immediately expand the proposed drilling program at Paguanta to enable the Company to test the significant extensions to the mineralisation suggested by recent geological mapping and the MT geophysical survey; to continue drilling early in the new year, should initial results from the drilling program be positive; to review new project opportunities for the Company; for administration costs; and for general working capital.
The Company has been approached by several institutional investors seeking to place monies with the Company since it announced its acquisition of the Paguanta Project in Chile. In the lead up to the commencement of drilling at Paguanta, the Directors would like to provide existing eligible shareholders with the opportunity to subscribe for Shares at a discount. In addition, the Company has a number of shareholders with unmarketable parcels of Shares. The Offer provides these shareholders with the opportunity to obtain a marketable parcel of shares at a discount to the market price, and without the usual transaction costs such as brokerage.
Participation in the Plan is optional, and is open to all shareholders who were registered as a holder of Shares as at 5.00pm (AEDT) on Tuesday, 25 October 2016 (Record Date) and whose registered address is in Australia or New Zealand (provided that if your registered address is in New Zealand you must also hold Shares on the opening date of the Offer).
The proposed timetable for the Offer is set out below however the Directors reserve the right to vary the dates and times without notice.
Golden Rim Resources Ltd I ABN 39 006 710 774 I Office 7, Level 2, 609 Canterbury Road, Surrey Hills, VIC 3127, Australia
www.goldenrim.com.au I [email protected] I T + 61 3 9836 4146
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Date
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Event
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Description
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25 October 2016
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Record Date
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Date on which the Company determined the eligible shareholders
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3 November 2016
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Despatch Offer Document
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Offer materials dispatched to eligible shareholders including a personalised application form.
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3 November 2016
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Opening Date
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Offer opens at 9.00am AEDT.
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24 November 2016
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Closing Date
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Offer closes. Applications must be received by 5.00pm AEDT on the Closing Date.
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29 November 2016
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Issue Date
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Shares issued
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30 November 2016
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Despatch Date
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Holding statements sent to shareholders
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Golden Rim's Managing Director, Craig Mackay, said "The zinc price was up strongly again last night and has now risen more than 50% this year and is nearing a 5 year high."
"Paguanta is a significant zinc project and such projects are rare worldwide. We want to ensure the Company remains sufficiently funded to rapidly progress Paguanta and to make the most of this opportunity to create significant value for shareholders," said Mr Mackay.
-ENDS-
For further information, please contact:
Hayley Butcher
Golden Rim Resources Ltd Company Secretary
+61 0409 880 009
Further Company Information
E: [email protected] W:goldenrim.com.au
Capital Structure:
Issued Shares: 1,438,520,000
Unlisted Options: 143,358,400
Share Registry:
Link Market Services Limited Central Park Level 4
152 St Georges Terrace Perth WA 6000
Telephone: (+61) 1300 554 474
Fax: 02 9287 0303
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