Base Resources announced the successful completion of the combined share placement and accelerated institutional component (Institutional Entitlement Offer) of the 1 for 3 renounceable entitlement offer announced on 19 December 2017 (Entitlement Offer), as part of the capital raising to raise gross proceeds of approximately A$100 million at A$0.255 per share (Offer Price).
The Placement and Institutional Entitlement offer, together with the institutional shortfall book-build, was fully subscribed and will raise gross proceeds of approximately A$89.0 million for the issue of approximately 349.2 million fully paid ordinary shares (New Shares).
The institutional shortfall book-build was completed on Wednesday, 20 December 2017, and was well supported by both existing major shareholders and new institutional investors, with all institutional shortfall shares being subscribed for at the Offer Price.
Settlement of the Placement and Institutional Entitlement Offer is scheduled for Thursday, 4 January 2018, with the New Shares expected to commence trading on Friday, 5 January 2018. On issue, the New Shares will rank equally in all regards with existing Base Resources ordinary shares.
“We have been delighted with the strong support demonstrated by our existing institutional shareholders and also the level of interest from new investors, as we progress with the transformational acquisition of the Toliara Sands project in Madagascar,” comments Base Resources MD Tim Carstens.
“We welcome our new shareholders to Base Resources’ register, and encourage the participation of our eligible retail shareholders in the retail entitlement offer,” he continues.
Commencement of the Retail Entitlement Offer The Entitlement Offer to existing retail shareholders (Retail Entitlement Offer) opens on Thursday, 28 December 2017 and is expected to close at 7.00pm (Sydney time) on Wednesday, 17 January 2018.
Shareholders who are eligible to participate under the terms of the Retail Entitlement Offer will be offered the opportunity to subscribe for 1 New Share for every 3 existing Base Resources shares held at 7.00pm (Sydney time) on Thursday, 21 December 2017 at the Offer Price of A$0.255 per share.
This is the same entitlement ratio and Offer Price as applied to the Institutional Entitlement Offer.
Eligible retail shareholders should carefully read the Retail Entitlement Offer Booklet and the personalised entitlement and acceptance form, which are expected to be sent to eligible retail shareholders on Thursday, 28 December 2017.
The Retail Entitlement Offer is only being extended to shareholders with a registered address in Australia, New Zealand or Kenya.
Notification to those retail shareholders that are ineligible to participate in the Retail Entitlement Offer will be provided separately.
The Retail Entitlement Offer is seeking to raise total gross proceeds of approximately A$11.0 million. Base Resources shares are expected to resume trading on ASX on Thursday, 21 December 2017.
Feature image credit: Base Resources