ASX RELEASE - 26 OCTOBER 2016
DESPATCH OF PROSPECTUS
BC Iron Limited (ASX:BCI) ("BC Iron" or "the Company") confirms that the Prospectus and personalised Entitlement and Acceptance Form in connection with the renounceable entitlement offer ("Entitlement Offer") announced on 13 October 2016 were despatched to Eligible Shareholders (as defined in the Prospectus) in the form attached today.
As announced, the Entitlement Offer provides the opportunity for existing Eligible Shareholders to acquire 1 new BC Iron share for every 1 existing share held as at 5:00pm (WST) on Friday, 21 October 2016 at an offer price of $0.13 per new share.
Further information for Eligible Shareholders
Eligible Shareholders are encouraged to carefully read the Prospectus for further details relating to the Entitlement Offer.
The Entitlement Offer closes at 5.00pm (WST) on Friday, 11 November 2016 unless extended or withdrawn. Applications and associated application monies must be received prior to this time.
The Company notes that some of the Entitlement and Acceptance Forms sent to Eligible Shareholders incorrectly included in the acceptance provisions a row titled "Number of Additional New Shares applied for". As stated in the Prospectus, Eligible Shareholders may not apply for shares in excess of their entitlement. If an Eligible Shareholder applies for additional shares in excess of their Entitlement, that application will be disregarded and any relevant application monies returned, without interest.
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FOR FURTHER INFORMATION: MEDIA ENQUIRIES:
ALWYN VORSTER DAVID TASKER / TONY DAWE
MANAGING DIRECTOR PROFESSIONAL PUBLIC RELATIONS
BC IRON LIMITED TELEPHONE: +61 8 9388 0944
TELEPHONE: +61 8 6311 3400
BC Iron Limited ABN 21 120 646 924
Level 1, 15 Rheola Street West Perth WA 6005
GPO Box 2811
West Perth WA 6872
T +61 8 6311 3400
F +61 8 6311 3449
E [email protected] W www.bciron.com.au
ABOUT BC IRON LIMITED
BC Iron is an iron ore mining and development company with assets in the Pilbara region of Western Australia, including Iron Valley, Buckland and Nullagine. BC Iron is listed on the ASX under the code 'BCI'.
Iron Valley is a mine located in the Central Pilbara with Ore Reserves of 123.2Mt at 58.8% Fe.1 The mine is operated by Mineral Resources Limited ("MIN") under an iron ore sale agreement, whereby MIN operates the mine at its cost and purchases Iron Valley product from BC Iron at a price linked to MIN's realised sale price. MIN is currently evaluating a range of initiatives that have the potential to improve the long term viability of Iron Valley and its value to both parties.
Buckland is a development project located in the West Pilbara region, comprising a proposed mine at Bungaroo South and its own proposed independent infrastructure solution incorporating a haul road and transhipment port at Cape Preston East. It has Ore Reserves of 134.3 Mt at 57.6% Fe,2 a completed and announced feasibility study, and all primary tenure and licences secured.
Nullagine is an unincorporated 75:25 joint venture with Fortescue Metals Group Limited ("Fortescue"), which commenced exports in February 2011. The Nullagine Joint Venture has the capacity to rail and export up to 6Mtpa of ore on Fortescue's infrastructure. Operations are temporarily suspended due to market conditions. On 10 October 2016, BC Iron entered into a conditional binding terms sheet for the sale of its 75% interest to Fortescue.
BC Iron also has an interest in a number of other exploration stage projects in the Pilbara and potential royalties over the Koodaideri South and North Marillana tenements.
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KEY STATISTICS
Shares on issue:
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196.3 million
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Cash and cash equivalents:
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A$9.5 million
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as at 30 September 2016
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Board:
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Tony Kiernan Alwyn Vorster Martin Bryant Andy Haslam Brian O'Donnell
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Non-Executive Director Chairman Managing Director
Non-Executive Director Non-Executive Director Non-Executive Director
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Major shareholders:
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Wroxby Pty Ltd
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19.0%
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Website: www.bciron.com.au
1: Refer to ASX announcement released on 30 August 2016.
2: Refer to BC Iron's 2015 Annual Report released on 26 August 2015.
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BC Iron Limited
ACN 120 646 924
Prospectus
For a renounceable entitlement offer to Eligible Shareholders of up to 196,263,455 Shares at an issue price of $0.13 per Share on the basis of 1 Share for every Share held on the Record Date to raise up to approximately $25.5 million before expenses.
The Offer is partially underwritten by Patersons Securities Limited and Foster Stockbroking Pty Ltd to $20.66 million. In addition, Wroxby Pty Ltd has committed to take up its Entitlement to the value of $4.86 million.
This Offer closes at 5.00pm WST on 11 November 2016. Valid acceptances must be received before that date.
IMPORTANT NOTICE
This document is important and requires your immediate attention. It should be read in its entirety. If you do not understand its contents, or are in doubt as to the course you should follow, you should consult your stockbroker, financial or other professional adviser.
The Shares offered by this Prospectus should be considered speculative.
Contents Page
Important notes 2
Corporate Directory 4
Important dates* 4
Chairman's letter 5
Brief instructions for Eligible Shareholders 6
Investment overview 7
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Details of the Offer 14
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Effect of the Offer on the Company 21
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Company overview 26
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Risk factors 29
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Additional information 37
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Directors' authorisation 51
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Defined terms 52
BC Iron Limited - Entitlement Offer Prospectus page |1