I just got this letter for all shareholders:
SHAREHOLDER UPDATE
FROM ANTON BILLIS
DearRimfire shareholder June 2023
Iam writing to provide an update with respect to the Rimfire Pacific MiningLimited (“Rimfire” or “RIM”) situation.
TheRimfire Board chose not to accept the funding proposal I put forward by the 31May 2023 deadline and, as such, it has now lapsed. The funding proposal wouldhave provided Rimfire with at least $2 million, and up to approximately $4.2million, in funding, via one of my companies Lake Grace Exploration Pty Ltd(which has previously invested significant funds in Rimfire). Acceptance of myproposal would have required the current Board to step aside.
Forthe record, before rejecting my proposal, RIM contacted the ASX to seek itsview as to whether acceptance of the funding proposal required shareholderapproval. RIM advised us on 30 May 2023, before the funding proposal lapsed,that the ASX had declined to give a view on whether shareholder approval wasrequired; hence, an ASX-imposed requirement to obtain shareholder approval wasnot a reason for the Rimfire Board’s rejection.
Rather,the primary reason touted by the RIM Board to shareholders in support of rejectingthe funding proposal is that the terms were “not in the best interests of shareholdersas a whole” (see ASX announcement of 1 June 2023).
Previously,RIM had stated (in its ASX announcement of 23 May 2023) that the fundingproposal would give me effective operation control of RIM (as the proposalwould result in me controlling the Board of Rimfire).
Thatis true. But I would ask you to consider my motivation in wanting to remove thecurrent Board before investing further funds in RIM. I have already invested millions of dollars in RIM under their stewardship – and to what end?
Asmany of you may know, having started off many years ago as a small-timeprospector, I have been extremely fortunate.
Amongstother achievements, I was fortunate to discover what was later to become theKundana Gold Mine near Kalgoorlie in Western Australia. I was also fortunate todiscover substantial mineralisation in Ghana which is currently the subject ofdevelopment studies and which I expect will ultimately become a substantiallylarger operation than Kundana. As such, I have already personally enjoyedconsiderable success.
Itrust it is clear that I am not motivated to take control of the Rimfire Board justfor the sake of having another board position to my name.
Moreover,with many business interests already under my control, taking control of theRimfire Board has nothing to do with satisfying my ego.
Rather,my motivation is solely driven by one objective – and that is to give Rimfirethe greatest chance of making a major geological discovery.
InRimfire’s ground position in the Lachlan Fold Belt, I see significant potential. I am hopeful that, under my leadership, Rimfire could make a major discovery and could become another success story, to the benefit of all RIM shareholders.
Inorder to maximise the prospects of making a major geological discovery asquickly as possible, I believe that Rimfire needs to undertake multiple large-scalesystematic exploration programs under the guidance of those with appropriateskills and experience.
Inmy view (which I know is shared by many other RIM shareholders), this can’t andnever will occur under the current Board which, in my opinion, has neither theability to raise the necessary funds nor the skills and experience to maximisethe chances of making a major geological discovery.
Forthe avoidance of doubt, I see Rimfire under my control spending millions ofdollars each year on exploration.
Forthe above reasons, the funding proposal I put to Rimfire was very much in thebest interests of all shareholders.
Itinvolved a placement at an issue price of 0.8 cents per share, representing a33.3% premium to the price at which the existing directors recently issuedshares to themselves, to raise approximately $1.67 million.
Theproposal also involved a 1 for 6 rights issue at 0.7 cents per share enablingall shareholders to top up their holdings should they have wished (at a 12.5%discount to the placement price), potentially raising up to a furtherapproximately $2.55 million.
I alsoindicated that I would be happy (with shareholder approvals if required) tounderwrite the rights issue at nil cost (i.e. nil underwriting fee) –if RIMwanted the certainty of raising the full amount of funds.
Together,the placement and underwritten rights issue would have seen Rimfire withapproximately $4.22 million at its disposal on highly favourable terms.
Fundsin this quantum would not guarantee that Rimfire would make a significant geologicaldiscovery; however, it would give RIM access to funding to aggressively andstrategically target the most prospective ground, under the guidance of me andmy highly experienced team.
Thiswould clearly be in the best interests of Rimfire shareholders as a whole.
Iam sure you can understand, however, that I am reluctant to continue to fundRIM’s exploration under the current leadership. I am yet to see a return on my significant investment to date – and I have lost faith in the existing Board’s ability to take RIM to the next level.
Withshareholder support, I would be only too pleased to reinstate the funding proposalon the same terms.
However,this will only occur if a majority of shareholders vote FOR all resolutions atthe meeting of shareholders to be held on 15 June 2023.
Itrust I can count on your support.
Withoutit, Rimfire will at best remain the stockmarket laggard it has always been.
Yourssincerely
ANTONBILLIS
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