BMG to raise up to $2.75m in oversubscribed placement and entitlement issue

BMG has received firm commitments to raise $1.5 million (before costs) via a placement of 120 million new fully paid ordinary shares at $0.0125 per share to institutional and sophisticated investors. Each participant in the placement will also receive a one for three free attaching option, exercisable at $0.025 by 30 September 2024.

HIGHLIGHTS

• BMG to raise up to $2.75 million (before costs) via Placement and Entitlement offers
• Firm commitments received to raise $1.5 million via an oversubscribed placement of new shares
• BMG to offer a one (1) for four (4) Entitlement offer to existing shareholders of the Company to raise a further $1.25 million
• Director shareholders intend to participate in the Entitlement offer
• Proceeds to fund drilling and project development activities at the Abercromby Gold Project including Resource expansion drilling at the Capital Deposit (11.1Mt @ 1.45 g/t Au for 518koz Au) and regional drilling of high priority targets
• Proceeds will also fund fieldwork to test lithium targets at Invincible and an RC drilling program at Bullabulling (under option) to test anomalous lithium targets

The Placement, initially targeting circa $1 million and utilising existing capacity under Listing Rules 7.1 and 7.1A

(Tranche 1), was heavily oversubscribed. The Company accepted offers for a further circa $0.5 million (Tranche 2) to bring the total placement amount to $1.5 million.

In addition to the Placement, the Company intends to offer a one (1) for four (4) non-renounceable pro-rata Entitlement Issue (Entitlement) to existing shareholders to raise up to $1.25 million (before costs) at an issue price of $0.013 per share (the fractionally higher issue price than the Placement is necessary to comply with requirements of the ASX Listing Rules in respect of pro rata offers of securities). This will also include free Attaching Options.

The Tranche 2 component of the Placement and the issue of the Attaching Options to the Placement will be subject to shareholder approval, which is to be sought at the upcoming general meeting, expected to be held on or about 15 June 2023. BMG does not intend to list the Attaching Options.

Together, the Placement and the Entitlement offer will raise a maximum $2.75 million.

The issue price of $0.0125 per share under the Placement represents a 21.9% discount to BMG’s last close prior

to the Placement offer (20 April 2023) of $0.016 per share and 24.6% discount to the 15-day VWAP.

BMG Resources Managing Director Bruce McCracken said:
“It is now game on for BMG. The outstanding maiden Mineral Resource at Abercromby,delivered from just three major drilling programs, is proof of our ability to leverage valuefrom exploration spend through strategic, targeted drilling. This was reflected in the heavyoversubscriptions to the Placement.

“The Company is now funded to continue exploration and development activities in anexcellent environment for gold and lithium exploration. We look forward to generatingstrong newsflow throughout 2023.

“Planning for drilling and development activities is underway for Abercromby with workdesigned to expand the resource at Capital and drill testing of the pipeline of exciting regional targets to the south.

“At Bullabulling, a maiden RC drilling program will test anomalous lithium pegmatites as we close in on potential project acquisition, and at Invincible, we will return to further testthe lithium targets identified in early fieldwork.

“This is an exciting time to be a part of the BMG story. The Company thanks all participants who bid into the placement book, welcomes successful applicants to the register and encourages all shareholders to participate in the entitlement issue which isnow underway.”