RENOUNCEABLE RIGHTS ISSUE
Icon Resources Ltd (ASX Code: III) is pleased to announce the terms of an issue of Shares and Options to shareholders. The Company proposes a renounceable rights issue of one New Share for every three Shares held by Shareholders at an Issue price of 20 cents per Share held at the Record Date of 12 June 2008, with one free attaching New Option for every two New Shares subscribed for. The Options will be exercisable at 35 cents each at any time prior to the expiry date of 30 June 2009.
The purpose of this Rights Issue is to raise working capital to fund the feasibility studies for re-treatment of tailings, drilling and test work to underpin a feasibility study for re-opening the open pit and underground mines at Mt Carbine, and exploration of the potential for ore grade mineralisation north of the pit. The funding will also continue Icon's exploration activities, in particular its gold (Crow King, near Barraba) and tin (Tara, near Hillston) prospects in NSW and the Fitzroy copper zinc project north-west of Rockhampton in Queensland.
The Rights Issue will raise approximately $3.1 million (before costs) through the issue of approximately 15.498 million shares and includes a Shortfall Facility whereby existing Icon shareholders (on the register at 5:00pm on 12 June 2008) will have priority in applying for additional New Shares and attaching New Options in excess of their pro-rata Entitlements.
Any remaining Shortfall will be allocated by the Broker to the Issue (ABN AMRO Morgans) in consultation with the Icon Directors.
The Prospectus relating to the Rights Issue will be lodged with the Australian Securities and Investments Commission (ASIC) and ASX on 2 June 2008. The Appendix 3B application for the quotation of the New Shares and the New Options on ASX is attached to this announcement.
Shareholders will receive their copy of the Prospectus very soon and they may apply using only the personalised Entitlement and Acceptance Form accompanying the Prospectus. A copy of the Prospectus will be available from 2 June 2008 for review on the ASX website www.asx.com.au and on the Company’s website www.iconresources.com.au
The following is an indicative timetable for the issue:
Announcement of Rights Issue
2 June 2008
Lodgement of Prospectus with ASIC and lodgement of Appendix 3B with ASX
2 June 2008
Notice sent to shareholders
4 June 2008
Rights trading commences on ASX (ex date)
5 June 2008
Record Date to identify Shareholders entitled to participate in the Rights Issue
12 June 2008
Despatch of Prospectus and Entitlement and Acceptance Forms
18 June 2008
Last day of Rights trading on ASX
25 June 2008
Deferred settlement trading commences
26 June 2008
Closing Date for the Rights Issue (5.00pm AWST)
2 July 2008
Notice given to ASX of under subscriptions
7 July 2008
Allotment of New Shares and New Options
8 July 2008
Despatch of holding statements and deferred settlement trading ends
10 July 2008
Trading of New Shares and New Options expected to commence on ASX
11 July 2008
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