The entitlement issue will be on the basis of one option for every eligible four shares held, up to around 395,935,727 options, at an issue price of 1 cent per option.
Each option will be exercisable for one fully paid ordinary share, at 2.5 cents per option, on or before July 28, 2023.
Recognising shareholder support
Cirralto said the purpose of the options issue was to recognise the support and loyalty the company had received from its shareholders to date.
This options issue will be made to all shareholders of the company named on its register of members at 5.00pm (AEST) on Friday, September 11, 2020, whose registered address is in Australia or New Zealand.
The board of the company recommends all eligible shareholders take up their entitlement and the directors of the company have confirmed that they intend to participate in the offer to the extent of their full entitlement.
Funding working capital
The funds raised from the offer are planned to be used for:
- $28,751 (7.3%) for expenses of the offer;
- $180,000 (45.5%) for marketing;
- $50,000 (12.6%) for investor relations; and
- $137,184 (34.6%) for working capital.
Intervening events (including exploration success or failure) and new circumstances have the potential to affect the manner in which the funds are ultimately applied and the board reserves the right to alter the way funds are applied on this basis.