22/01/2008 - 11:08

RMA Energy proposes share split

22/01/2008 - 11:08

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Perth-based RMA Energy Ltd says it wants to increase liquidity and affordability of the company's stock through a four-for-one share split.

RMA Energy proposes share split

Perth-based RMA Energy Ltd says it wants to increase liquidity and affordability of the company's stock through a four-for-one share split.

As a result of the proposed split, the number of RMA Energy Ordinary shares on issue will increase from 61 million to 244 million with the number of options on issue increasing from 6.1 million to 24.4 million.

RMA said at completion, each shareholder would hold the same proportion of the company's share capital and net assets as before.

Chairman Terry Byrt said its stock was very tightly held, had risen significantly since listing, and did not trade in very high volumes.

"This share split will increase the number of shares on issue and at the same time stimulate liquidity and affordability of the stock, which we feel is important to attracting the interest of retail investors and small-cap funds."

"We want people to have the opportunity to purchase the stock at a reasonable level and see it appreciate as we develop its significant Queensland assets."

Significant exploration activity is currently occurring at McCauley Creek and Coane Range, with an initial JORC resource on both of these projects expected by Q2 2008.

A general meeting of shareholders will be held on March 6 to approve the share split with normal trading in the reorganised shares on a T+3 basis expected on March 25.

RMA Energy, which has a market capitalisation of approximately $118 million, has six strategic exploration projects in Queensland comprising McCauley Creek, Cliffdale Creek, Emerald, Coane Range, Bulburrum and Moonie which are prospective for tin, uranium and coal in addition to other minerals.

 

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