Black Mountain Resources - Prospectus Lodged for Namakera Acquisition
Black Mountain Resources (ASX: BMZ) has released a Prospectus to raise up to $4,500,000 via the issue of 45,000,000 Ordinary shares at 10 cents per share. The Offer is subject to shareholder approval of the Namakera acquisition and ASX resinstatement approval. The Offer will close on 9 September 2016, with reinstatement expected the following day.
Black Mountain Resources Limited (ASX:BMZ) (Black Mountain or the Company) announces that it has lodged its prospectus (the Prospectus) with the Australian Securities and Investments Commission inviting investors to subscribe for up to 45,000,000 shares at an issue price of $0.10 each to raise $4,500,000 (Offer).
As previously announced by the Company to ASX on 14 July 2016 (Transaction Update and Dispatch of Notice of Meeting), the Company is seeking approval at a Meeting of Shareholders to be held on 15 August 2016 to proceed with the acquisition of 100% of the share capital in GLF Holdings Limited (Gulf) (the Transaction).
Gulf is the 100% shareholder of Namakera Mining Company Limited (NMCL), which is the registered holder of Mining License ML 4651, upon which it operates the Namakera Vermiculite Mine and conducts exploration activities on the Busumbu Phosphate Project located in Uganda.
NMCL is also the registered holder of Exploration License EL 1534 that is also considered prospective for vermiculite, phosphate, copper, iron, zircon and rare earths mineralisation.
The Company is proceeding with the Offer to satisfy conditions of the Transaction; to meet the requirements of ASX and to seek to obtain ASX’s approval to re-instate the Company’s Shares to official quotation on the ASX.
The funds raised from the Offer will provide funding for the Company’s planned mining fleet and infrastructure upgrades and mine and process plant optimisation studies at the Namakera Vermiculite Mine, as well as exploration and resource definition drilling programs at the Namakera Vermiculite Mine and Busumbu Phosphate Project, and administration, working capital and creditor payments.
The Offer contained in the Prospectus, is conditional on certain Resolutions being passed at the Meeting of Shareholders to be held on 15 August 2016.
An indicative timetable for the Offer is shown below:
The above timetable is indicative only and the Directors reserve the right to amend the timetable at anytime in consultation with the ASX. Any changes will be released to the ASX.
Upon successful completion of the Offer, the Company will apply for re-instatement of its shares to quotation on the ASX.
Sanlam Private Wealth Australia has been appointed as Lead Manager for the Offer and Verdant Capital as Advisor to the Offer.
The Prospectus is available on the Company’s website at www.blackmountainresources.com.au.
The Prospectus should be read and considered in its entirety before making any decision to invest in shares. Securities offered pursuant to the Prospectus carry no guarantee in respect of return of capital, return on investment, payment of dividends or the future value of the shares. Persons wishing to acquire shares will need to complete an application form accompanying the Prospectus.