Capital Raising / Entitlement Offer

Alliance Resources Limited to raise up to $5.052 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 10 December 2020 (Record Date) at an issue price of $0.17 per share to raise up to approximately $5.052 million (before costs) (Entitlement Offer).

The issue price of $0.17 per share represents a 10.53% discount to the closing price on 4 December 2020, and a 12.14% discount to the 30 trading days volume weighted average price up to and including 2 December 2020.

The funds raised from the Entitlement Offer will be applied to RC drilling and diamond drilling for exploration, feasibility study work, process plant engineering design, mine design and operating cost determination, 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 10 December 2020).

If the Entitlement Offer is fully subscribed, approximately 29.7 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  2020-2021

1.

Lodgment of Offer Document with ASX

Monday, 7 December 20

2.

Notice of Entitlement Offer sent to option holders

Monday, 7 December 20

3.

Ex-date

Wednesday, 9 December 20

4.

Record Date

Thursday, 10 December 20

5.

Entitlement Offer Opening Date

Tuesday, 15 December 20

6.

Entitlement Offer Closing Date

Wednesday, 27 January 21

7.

New Shares quoted on a deferred settlement basis

Thursday, 28 January 21

8.

Allotment and issue of New Shares

Wednesday, 3 February 21

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 has been lodged with the ASX on 7 December 2020.  The Offer Document, which includes a personalised application form, was sent to Eligible Shareholders on 15 December 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 licensed 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 (AEDT), Monday to Friday.

As the office may be unattended, if your call is unanswered please leave a message, including your contact number, and the Company will return your call as soon as possible.

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