Aldoro Resources Introduces Loyalty Option Entitlement Offer
ALDORO RESOURCES LIMITED (ARN) Share Update July 2024 Monday 22nd
Aldoro Resources Announces Loyalty Option Entitlement Offer
Aldoro Resources Ltd (ASX: ARN) has announced a new loyalty option entitlement offer, aiming to raise up to $673,119 before costs. This offer is designed to reward existing shareholders and support the company's upcoming projects.
Instant Summary:
- Aldoro Resources launches a non-renounceable entitlement offer.
- One loyalty option for every four fully paid ordinary shares.
- Issue price of $0.02 per loyalty option.
- Potential to raise up to $673,119 before costs.
- Loyalty options exercisable at $0.12 on or before 1 June 2029.
- 5,000,000 options to be issued to Ms. Quinn Li at $0.001 per option.
- Funds to be used for Kameelburg Project, working capital, and offer expenses.
Details of the Offer
Aldoro Resources Ltd ('Aldoro' or the 'Company') has lodged a prospectus with the Australian Securities and Investments Commission (ASIC) for a non-renounceable entitlement offer. This offer will provide one loyalty option for every four fully paid ordinary shares held by shareholders at the record date, with an issue price of $0.02 per loyalty option.
The offer aims to raise up to $673,119 before costs. Each loyalty option will be exercisable at $0.12 on or before 1 June 2029. Additionally, the company will issue 5,000,000 options to Ms. Quinn Li at an issue price of $0.001 per option, subject to shareholder approval, raising up to $5,000.
Purpose of the Funds
The funds raised from the offer will be allocated as follows:
- Preparations for the drill program at the Kameelburg Project: $547,474 (80.74%)
- Working capital: $50,000 (7.37%)
- Expenses of the offer: $80,645 (11.89%)
Timetable of Events
The key dates for the offer are as follows:
- Announcement of Offer: Monday, 22 July 2024
- Lodgement of Prospectus with ASIC & ASX: Monday, 22 July 2024
- Ex-date: Thursday, 25 July 2024
- Record Date for determining entitlements: Friday, 26 July 2024
- Prospectus despatched to shareholders: Wednesday, 31 July 2024
- Last day to extend Closing Date: Tuesday, 6 August 2024
- Closing Date: Friday, 9 August 2024
- Securities quoted on a deferred settlement basis: Monday, 12 August 2024
- Announcement of results of issue: Friday, 16 August 2024
- Issue date: Friday, 16 August 2024
Lead Manager and Quotation
The company has appointed Xcel Capital Pty Ltd as the Lead Manager for the offer. Xcel Capital will receive a fee equal to 6% of the funds raised under the offer and will be issued 2,500,000 options on the same terms as the loyalty options. The company aims to quote the loyalty options on the ASX, subject to meeting the quotation requirements.
This loyalty option entitlement offer is expected to strengthen Aldoro Resources' financial position, enabling the company to fund its upcoming projects and maintain operational stability. The offer may positively influence the company's stock price as it demonstrates a commitment to rewarding existing shareholders and securing funds for future growth.
Investor Reaction:
Analysts and investors have shown interest in the offer, noting that it provides an opportunity for existing shareholders to benefit from potential future gains. The market reaction has been cautiously optimistic, with some investors expressing confidence in Aldoro's strategic plans.
Conclusion:
Investors should consider participating in the loyalty option entitlement offer to take advantage of potential future gains and support Aldoro Resources' growth initiatives. Monitoring the company's progress on the Kameelburg Project and other ventures will be crucial in assessing the long-term impact of this offer.