Just looking at these resolutions for the GM. It’s tough to be...

Just looking at these resolutions for the GM.

It’s tough to be positive under the circumstance…SP in the toilet, rare-earth prices down… no revenue coming in….I get it.

Looking at these resolutions, for the most part they seem consistent with an equity raise, and a new director joining, as well as a final payment to REEA for Makuutu.

So, res 1 to 5 are the placement of shares in the deal crunched to raise the $5.5M, to continue progress at Belfast and Makuutu. This includes placements to MST finance and Canacord as part of the deal.

If these are not voted in, the company does not get the 5.5M and may have to pay the book runners in cash, rather than equity.

I wont tell you where this will leave us.

Do your own calculations s to try and understand the financial position this would leave the company in. 0.4 quarters....

That's 1.2 months.....

I will attach the relevant section of March’s quarterly

The picture it paints for me is the orphan period I spoke about.

Stuck in limbo between capex and progressing projects to fruition............ before they deliver any return.

The toughest stretch for any junior, is to stay alive long enough to realise their potential.

We have pumped a lot of capex and investment into our projects, which has left the cupboards quite bare.

I am betting they are close to locking something down, that's why I bought in....otherwise, we are all going down with the ship.

There may be some misunderstanding by the punters here, but my take-

RES 6 and 7, is of course the issuance of PAYED.... NOT FREE, shares to the new Chairman Lynch.

Res 6-
The way I read res 6, is Lynch is PAYING 1.3c/ share for 38,461,539 shares
They are being issued for a 1.3c consideration.
The full shares in res 6 amount to $500K at the 1.3c issue price.

He is not being gifted ANY shares, and if the company does not receive this $500,000, it will seek alternative funding-

From the explanatory notes for Res 6 page 13-

If Resolution 6 and 7 are not passed, the Shares and Options will not be issued to Mr Brett Lynch and the Company may
need to amend its proposed activities or seek alternative funding arrangements.

The specifics-

(d) the issue price will be $0.013 per Share, being the same issue price as Shares issued to other participants in the
Placement. The Company will not receive any other consideration for the issue of the Shares;
(e) the purpose of the issue is to allow Mr Brett Lynch to participate in the Placement on the same terms as other
participants under the Placement. The funds raised from the issue of Shares under Resolution 6 will be applied to
advance the commercial partnership negotiations, magnet recycling demonstration plant enhancements and the
completion of the feasibility study at Ionic Technologies, plus activity at the Makuutu demonstration plant tied to
offtake negotiations and working capital;
(f) the Shares to be issued under Resolution 6 are not intended to remunerate or incentivise Mr Brett Lynch;
.
Res 7- Some options for Lynch, however, he will have to pay a strike price of 2c before 2028 to exercise them.
They are not even in the money yet.

The specifics-
(d) the purpose of the issue of the Options is to allow Mr Brett Lynch to participate in the Placement on the same
terms as other participants under the Placement;
(e) the Options to be issued under Resolution 7 are not intended to remunerate or incentivise Mr Brett Lynch;
(f) the Options were issued at a nil issue price. Accordingly, no funds will be raised from the issue however, the
proceeds from the exercise of the Options are intended to be applied towards working capital; and
(g) a voting exclusion statement is included in Resolution 7 of this Notice.

Not much of a deal when you can buy them for 40% less on market at 1.2/1.3c.
So, in my view, this is a nothing burger.
If they were to offer them to us, we would tell them their dreaming and buy full shares on market for 1.2c.....


The reason why we are voting on res 6 and 7, is because IXR want to keep this new issuance of shares, exempt from the 15% yearly issuance afforded by the ASX for companies to raise cash via equity, please read below-

Technical information required by ASX Listing Rule 14.1A – Resolutions 6 and 7
If Resolutions 6 and 7 are passed, the Shares and Options will be issued to Mr Brett Lynch and will not be included in
calculating the Company’s 15% placement capacity under Listing Rule 7.1, effectively increasing the number of equity
securities that the Company can issue without Shareholder approval over the 12 month period following the date of issue of
those securities.
.This does not necessarily mean they will raise, but it leaves the door open to maximise their yearly quota.

Res 8-
Final payment to REEA for the earn in....and not as bad as you think.

As announced 5 July 2019, the final milestone fee payment is due on award of the conversion of existing licences to a
mining licence to Rare Earth Elements Africa Pty Ltd (REEA). The formal signing of the large-scale Mining Licence
(LML00334) over the central Makuutu tenement (previously Retention Licence 1693) was announced 18th January 2024.
The final milestone fee of US$375,000 has been settled via script issued using a 30-day volume weighted average price
(VWAP) of $0.0221 per Share recorded close of trading 9 February 2024 and an exchange rate of 0.6524 USD to AUD
resulting in a total consideration of 26,017,409 shares in IXR issued to REEA. This now satisfies all hurdles of the Makuutu
earn-in agreement.
.They issued 26,017,409 shares at 2.221c.
If they were issued post CR at 1.3, it would have been 44,215,441 shares.
So, they really dodged a bullet there by using an old VWAP, to get to the US$375,000.
The dilution could have been way worse.

So, in its entirety, the GM resolutions are not as bad as at first glance.

Resolutions 1 to 5, are basically tied to the CR we had to have...otherwise we would be broke and out of the ASX.

Resolution 6 is SELLING shares to Lynch to raise $500,000, of which the company is counting on.

Resolution 7 is gifting options that aren't in the money and will cost 2c to exercise, when its cheaper to buy A class shares on market like the rest of us for 1.2c. If I was Lynch I would give them back....

Resolution 8- Final payment for the earn in at Makuutu.

So, in a nutshell, we paid for Makuutu, paid for the CR, and screwed Lynch for another $500k....

In 3 months Lynch has sunk in $2M of his own money at last count, which speaks volumes for his belief in the company.

For all our sakes, I hope he knows what he is doing....