GUNSON RESOURCES LIMITED
1 FOR 10 ENTITLEMENT ISSUE OF FULL PAID SHARES
15th November 2007
The Directors of
The proceeds of the Entitlement Issue will be used to fund ongoing work on Gunson’s exploration and development projects described in the recently released 2007 Annual Report, in particular the Coburn zircon project, Burkin and Fowler’s Bay nickel projects and the Tennant Creek gold-copper project. No funds are required for the
KEY TERMS
|
Nature of offer |
Non renounceable Entitlement Issue of up to 10,870,142 New Shares |
|
New Share issue price |
20 cents per New Share |
|
Offer ratio |
1 New Share for every 10 Existing Shares held on the Record Date |
|
Number of New Shares to be issued |
Up to 10,870,142 |
|
Amount to be raised under the Entitlement Issue |
Up to $2.17 million |
Shareholders who hold ordinary shares in the Company (Existing Shares) as at
5.00pm WST on Friday, 23 November 2007 (Eligible Shareholders) will be
entitled to participate in the Entitlement Issue. All Eligible Shareholders will be
offered 1 New Share in the Company for every 10 Existing Shares held by the Eligible
Shareholder, at an issue price of 20 cents per New Share (Entitlement). This represents a discount of approximately 7% to the weighted average market price of Gunson’s shares over the past three weeks to 14 November 2007, the last day of trading before this announcement.
All New Shares issued under the Entitlement Issue will rank equally with the Existing Shares on issue. The issue of any New Shares to Eligible Shareholders which results in a fraction will be rounded down to the nearest whole New Share.
The Entitlement Issue is not underwritten. If there is a shortfall in acceptances
under the Entitlement Issue, Gunson reserves the right to place the shortfall at
its discretion.
There is no minimum subscription in respect of the Entitlement Issue. If the full
amount of A$2.17 million is not raised under the Entitlement Issue, Gunson will
initiate a placement to sophisticated investors.
KEY DATES
Key dates for the Entitlement Issue are set out below. The dates are indicative
only and Gunson reserves the right to vary them, subject to the Corporations
Act 2001 (Act) and the ASX Listing Rules.
|
Announcement of Entitlement Issue |
15 November 2007 |
|
“Ex Date” for Existing Shares ex Entitlement |
19 November 2007 |
|
Record Date for determining Entitlements to New Shares |
5.00 pm WST on 23 November 2007 |
|
Entitlement Issue cleansing statement given to ASX |
26 November 2007 |
|
Invitation to participate in Entitlement Issue and Acceptance Forms Entitlement despatched to Shareholders |
26 November 2007 |
|
Closing Date and final time for receipt of Entitlement and Acceptance Forms and payment in full for New Shares |
5.00 pm WST on 14 December 2007 |
|
Issue of New Shares and on-sale cleansing statement given to ASX |
No later than 21 December 2007 |
|
Holding Statements for New Shares despatched to Shareholders |
No later than 24 December 2007 |
INFORMATION PROVIDED IN RELATION TO ENTITLEMENT ISSUE
The Entitlement Issue is being made without disclosure to investors under Part
6D.2 of the Act, in accordance with section 708AA of the Act.
Shareholders will not receive a prospectus in relation to the Entitlement Issue but
will receive a written invitation providing details on how to take up their
entitlement under the offer. Any decision to acquire New Shares should only be
made after making independent enquiries and consulting relevant professional
advisers, such as stockbrokers, financial advisers, accountants or solicitors.
Shareholders should have regard to publicly available information about Gunson
before deciding whether or not to acquire New Shares. Copies of Gunson’s
announcements to ASX can be obtained from its website, www.gunson.com.au,
or from the ASX website, www.asx.com.au. Gunson’s ASX code is GUN.
Information about use of proceeds
It is intended to utilise the monies raised under the Entitlement Issue to fund drilling on the Tennant Creek gold-copper project, geophysical surveys and drilling on the Burkin and Fowler’s Bay nickel projects and some continuing pre development work on the Coburn zircon development project.
Gunson’s capital structure on completion of the Entitlement Issue
The following table shows the proposed capital structure of Gunson on
completion of the Entitlement Issue. The exact number of New Shares to be
issued cannot be calculated until Entitlements have been determined following
the Record Date.
|
Shares |
Number |
|
Existing Shares on issue at the date of this announcement |
108,701,416 |
|
New Shares proposed to be issued under the Entitlement Issue |
10,870,142 |
|
Proposed total shares on issue after the Entitlement Issue |
119,571,558 |
|
Existing options to acquire shares on issue at the date of this announcement |
3,700,000 |
ADDITIONAL INFORMATION
New shares
New Shares, once issued, will rank equally with Gunson’s Existing Shares on
issue.
The rights and obligations attached to shares in Gunson are:
• set out in Gunson's Constitution which may be examined free of charge
by appointment between 9.00 am and 5.00 pm on normal business days
at the registered office of Gunson at Level 2,
• in certain circumstances, regulated by the Act, the ASX Listing Rules and
the general law.
Dividends
The Company is not currently paying dividends.
Foreign shareholders
Shareholders with registered addresses outside of
are not eligible to participate in the Entitlement Issue.
Enclosure
An Appendix 3B is enclosed.
Enquiries
Enquiries about the Entitlements Issue should be directed to the Company Secretary,
D N HARLEY
MANAGING DIRECTOR