South Perth-based gold and nickel explorer Mindax Ltd has announced plans to raise $2.4 million through a non-renounceable entitlements issue to fund planned exploration programs on its uranium, gold, copper and iron ore projects in Western Australia.
South Perth-based gold and nickel explorer Mindax Ltd has announced plans to raise $2.4 million through a non-renounceable entitlements issue to fund planned exploration programs on its Uranium, Gold, Copper and Iron Ore projects in Western Australia.
The full text of a company announcement is pasted below
On 22 October 2007 Mindax Limited announced to the market that a renounceable entitlements issue of 2 New Shares for every 5 shares held at an issue price of 10 cents per New Share, together with 1 free attaching New Option (with a 20 cent exercise price and 30 June 2008 expiry date) for every 2 rights subscribed, would be
offered to entities registered as shareholders on 12 November 2007. Subject to the execution of a formal underwriting agreement, Patersons Securities Limited intend to underwrite the entitlements issue.
The entitlements issue has been resolved under the Company's capital management strategy and will seek to raise approximately $2.41 million (before issue costs) to provide working capital and fund planned exploration programmes on the Company's prospective Uranium, Gold, Copper and Iron Ore projects in Western Australia. Your Directors consider that the potential funding offered by the entitlements issue is a prudent capital raising mechanism and in the best interests of the Company.
Under the terms of the options that you currently hold, to be eligible to participate in the entitlements issue, you will need to exercise your existing options and ensure you are registered as a shareholder by 12 November 2007. To facilitate the exercise of your options, please find at the back of this letter an application for shares upon exercise notice.
It should be noted that the exercise of your options is not compulsory. However, failure to exercise your options before 12 November 2007 will result in you not being eligible for participation in the proposed entitlements issue.