SPP email from Peloton Shareholder services

Just received an email from Peloton Shareholder Services. Apparently Sipa saw fit to give out my email. Great !
Quite an amusing read. Full of the same BS that we have become so use to.

"SRI, as you may know are an ASX listed exploration and discovery specialist"

Oh really do tell. When did this bunch of specialists last discover anything of economic value ? I think it was the late 90's. But lets not worry ourselves about boring little details



Dear Shareholder,

We have been authorised by Sipa Resources (SRI) to contact shareholders directly about their upcoming fully underwritten Share Purchase Plan (SPP)

You should have received an SPP Offer Document in the post. The company are looking to raise $2m at the offer price of $0.012. Funds will be applied toward follow up drilling currently underway at Paterson North and to continue to delineate higher grade massive sulphide zones at Akelikongo in Northern Uganda, as well as providing additional working capital.

If you have not received the paperwork please get in touch with me as soon as possible and I will attempt to get that for you. Please note that the offer closes on Thursday 19^th October

Sipa Resources or SRI, as you may know are an ASX listed exploration and discovery specialist who are currently pursuing 2 greenfields discoveries. The first of which is the highly prospective Paterson North land package located around 5 hours West of Port Hedland, involving an exciting new copper polymetallic discovery. The other is the Akelikongo project located in the north-east margin of the Congo super-craton, part of the new East African frontier for oil and minerals. With these two projects, Sipa has had their busiest 12 months thus far, continuing to advance both programs and position themselves for strong news flow toward the end of this year.

Earlier this year, Sipa Resources identified a large mineralized system at their Obelisk prospect at Paterson North. In Sipa’s third drilling campaign in a little over 12 months recent samples have identified a strongly anomalous zone of mineralisation with intersections of up to 102m @ 0.09% Cu and 46m @ 0.12% Cu. Although these are not yet economic Sipa continues to drill, and feel that this mineral suite is similar to that of other intrusion related deposits in the region, including Telfer (Newcrest), Calibre Magnum (Antipa AZY & Rio Tinto RIO JV). Essentially, nearly all of the other mineral systems with these minerals present have had gold in them. Furthermore Sipa’s >1000sqkm land package is positioned between tenements held by Antipa and Rio Tinto towards the South and West. On that point, SRI sees themselves as project initiators and are regularly in contact large companies such as Rio Tinto, aiming for potential JV opportunities once they have developed their projects to the appropriate stage.

Going forward towards the end of the year the company will continue it’s drilling at Paterson North, with results from the Diamond drilling in the Obelisk due to be released between October and December, as well as Air Core Drilling next month. This should provide some positive news flow for the market to digest before the New Year.
Other potential news flow for SRI, is the Akelikongo project in Uganda that continues to deliver promising results. The project is 100% owned and generated by Sipa, with the discovery to date indicating a large plunging shoot of disseminated and massive nickel and copper sulphides in a setting that is identical or very similar to the exceptionally successful Nova Bollinger prospect. Sipa are actually first movers in this exciting belt and recent highlights were 7m @ 1.04% Ni in addition to deeper lower grade hits of 84.5m @ 0.37% Ni. Again, proving that drill results have been consistently increasing in average grade from mid-2015, indicative of effective vectoring towards where the massive sulphides are most likely to have been deposited. Despite the comment investors misperception, Uganda is also very much open for business and is rated 2^nd in Africa for Economic Freedom by the Fraser Institute. In terms of the next steps and continuing news flow, SRI are currently conducting high powered geophysics (fixed loop EM) to identify further massive sulphide drilling targets down plunge and are expecting to receive results in October. Similar to Paterson North, SRI is pursuing alternative funding sources such as joint ventures with major companies.

In terms of giving you investors greater levels of confidence, it’s important to remember this SPP is fully underwritten, with all management taking up their entitlements themselves. Shareholders are being offered the opportunity to retain their equity in the company.

Ultimately Sipa Resources are fully funded for both programs and look forward to providing investors with strong news flow into the new year. With an Enterprise Value of only $10m, we think this offer for shareholders represents a fair entry point on two potential major greenfields discoveries. Particularly when one considers the value that SRI trades in comparison to its listed Nickel peers (Market Cap vs RXL, ENR, RWD, BUX and SGQ – NB see appendix and page 8 of IIR Report). Particularly when one considers the value of its neigbour Antipa Minerals (AZY) with a market cap of $25m.

Peloton Shareholder Services is not in a position to be able to make any formal recommendation to you as to the suitability of this offer to you or whether you should take it up or not and would recommend that you seek advice from your financial adviser before making any decision.

I have also provided an appendix document with a summary of the company. Should you wish to get in touch with me directly, I am more than happy to talk through the company and/or record feedback and answer any questions. Additionally, the Managing Director Lynda Burnett has also expressed that she is happy to talk to shareholders.

Yours Sincerely,
Sam Horner

Manager
Peloton Shareholder Services
Level 5
56 Pitt St
Sydney NSW 2000

AFSL No. 406040
PHONE  + 61 2 8651 7816
EMAIL [email protected]