Capital Raising / Entitlement Offer

    Alliance Resources Limited to raise up to $2.054 million in non-renounceable rights issue

    Alliance Resources Limited ACN 063 293 336 (ASX:AGS) (Company) is pleased to announce a non-renounceable rights issue entitling shareholders to subscribe for one new share for every six shares held on the record date of 14 May 2020 (Record Date) at an issue price of $0.08 per share to raise up to approximately $2.054 million (before costs) (Entitlement Offer).

    The issue price of $0.08 per share represents a 11.1% discount to the closing price on 7 May 2020, and a 18.6% discount to the 30 trading day volume weighted average price up to and including 4 May 2020.

    The funds raised from the Entitlement Offer will be applied to RC drilling and diamond drilling for exploration, resource definition and metallurgical/geotechnical purposes, feasibility study work, offer expenses and working capital.

    Eligible shareholders

    Existing shareholders with a registered address in Australia and New Zealand (Eligible Shareholders) will have the opportunity to participate in the Entitlement Offer.  The Entitlement Offer will be made to registered Eligible Shareholders at 7.00pm (Melbourne time) on the Record Date (being 14 May 2020).

    If the Entitlement Offer is fully subscribed, approximately 25.7 million New Shares (subject to rounding and assuming no options are exercised before the Record Date) will be issued.

    Indicative timetable

    An indicative timetable of key dates in relation to the Entitlement Offer is as follows:

     

    Event

    Date - 2020

    1.

    Lodgment of Offer Document with ASX

    Monday, 11 May

    2.

    Notice of Entitlement Offer sent to option holders

    Monday, 11 May

    3.

    Ex-date

    Wednesday, 13 May

    4.

    Record Date

    Thursday, 14 May

    5.

    Entitlement Offer Opening Date

    Tuesday, 19 May

    6.

    Entitlement Offer Closing Date

    Thursday, 28 May

    7.

    New Shares quoted on a deferred settlement basis

    Friday, 29 May

    8.

    Allotment and issue of New Shares

    Thursday, 4 June

    The above table is indicative only and all dates may be subject to change.

    Subject to the ASX Listing Rules the Company's directors reserve the right to extend the Closing Date for the Entitlement Offer at their discretion.  Should this occur, the extension would have a consequential effect on the anticipated date of issue of the New Shares.

    The Entitlement Offer is being made without a prospectus pursuant to section 708AA of the Corporations Act 2001 (Cth). The Offer Document will be lodged with the ASX on 11 May 2020.  The Offer Document, which includes a personalised application form, will be sent to Eligible Shareholders on 19 May 2020.  Eligible Shareholders should consider the Offer Document carefully before deciding whether to participate in the Entitlement Offer.

    If you have any questions, you should seek advice from your stockbroker, accountant or other independent and appropriately licenced professional adviser. For further information about the Entitlement Offer you can call the Company on +61 3 9697 9090 at any time between 8:30am and 5:00pm (AEST), Monday to Friday.

    Please also refer to the ASX Announcements below for further information.