The company is now well-positioned to further advance its 100%‐owned La Paz Rare Earths Project in Arizona, USA, with funds raised to be used to fund the expansion, exploration and economic evaluation of the project.
“Transformation to developer”
Chairman Creagh O’Connor said: “As BPL announced on March 12, 2020, the transformation of the company to developer with a world-class rare earth project is well underway.
“Rare earth is a key US strategic resource, which through its development is made available to provide its output for US‐based processing.
“The potential opportunity to capitalise on growing developments in the REE market is substantial.
“We believe that localising the management and operations of the company in the US is an important step in ensuring the enhancement of value of the project and the company.”
The placement will see the issue of:
- Around 33.1 million new shares at 1.5 cents per new share; and
- An attaching loyalty share on a 1 for 8 basis (about 4.1 million shares) being fully paid ordinary shares to be issued as soon as practicable after February 24, 2021, for no consideration on the basis the investor subscribes for the new shares and holds the new shares until that date.
This will raise around A$496,500, including $90,000 (6 million new shares and 750,000 loyalty shares) committed by related parties subject to shareholder approval under ASX Listing Rule 10.11.
The issue of new shares to unrelated parties (approximately 27.1 million new shares for $406,500) will be on or about Monday, June 15, 2020, as practicable under the company’s available capacity pursuant to ASX Listing Rule 7.1.
The company will seek shareholder approval under ASX Listing Rule 10.11 for the issue of 6 million new shares proposed to be issued to related parties.
Loyalty shares are to be issued as soon as practicable after February 24, 2021, subject to ASX Listing Rule requirements at that time.