Ann: Placement of $3.216m completed and SPP seeks to raise $2.5m-PIO.AX, page-2

Placement to raise $3,216,000 completed and Share Purchase Plan offered to eligible shareholders to raise a further $2,500,000

Pioneer Resources Limited ("Company" or "Pioneer") (ASX: PIO) is pleased to announce that it plans to undertake a share purchase plan (“SPP”) to raise up to $2,500,000.

Key points
- Placement of approximately 89.3 million new shares completed at an issue price of 3.6 cents per share raising approximately $3,216,000 before issue costs (together with approximately 29.8 million new options on the basis of one free attaching option for every three new shares subscribed for with the options exercisable at 6 cents each by 31 July 2018).

- Company will offer new shares to eligible shareholders under a Share Purchase Plan (SPP) at an issue price of 3.6 cents per share to raise up to $2,500,000.

- Eligible shareholders who accept and are issued new shares under the SPP will also be granted one free attaching option for every three new shares issued (with the options exercisable at 6 cents each by 31 July 2018) conditional upon shareholder approval at a General Meeting to be convened and the lodgement of a disclosure document.

Funds are expected to be used to fund the Company’s ongoing exploration programs:
- At the recently acquired Mavis Lithium Project in Ontario, Canada:
-- Field surveys and drilling of spodumene-bearing pegmatites; and
-- Further lithium specific project evaluations.

- Within its extensive portfolio of lithium, gold and nickel projects in Western Australia:
-- Field surveys and drilling of lithium targets at the Pioneer Dome Project;
-- Widespread aircore drilling at the Acra Gold Project, with follow-up RC drilling; and
-- Diamond core drilling, subsidised under the State-funded EIS programme, at the Blair Nickel Project.

Under the SPP, eligible shareholders who were registered as holders of shares in the Company at 5.00pm (WST) on the record date of 24 June 2016 and whose registered address is in Australia or New Zealand (“Eligible Shareholders”), can apply for new shares at an issue price of 3.6 cents per share. In addition Eligible Shareholders who accept and are issued shares under the SPP will also be granted one free attaching new option for every three new shares subscribed for and issued, with an exercise price of 6 cents each expiring on 31 July 2018. The issue of new options to Eligible Shareholders will be subject to the lodgment of a transaction-specific prospectus and shareholder approval, which will be sought at a general meeting expected to be held by 31 August 2016.

The SPP will be on a “first in first served basis” with the final allocation being at the discretion of the Directors.

The issue price of 3.6 cents per share represents a discount of 20.6% to the 5 day volume weighted average market price over the last 5 days on which sales in Pioneer shares were recorded of 4.54 cents per share.

The SPP follows the completion of a placement raising $3,216,000 (before issue costs) to further fund ongoing field programs outlined below at the Company’s exploration projectsin Ontario, Canada, and in Western Australia.

The capital raising was completed by way of a placement of 89,333,333 new shares at an issue price of 3.6 cents per share and 29,777,777 free attaching options (on the basis of one free attaching new option for every three new shares subscribed for, with an exercise price of 6 cents each expiring on 31 July 2018) and was made to professional and sophisticated investors of Sanlam Private Wealth.

The Company will apply for quotation of the new shares on ASX, which will rank equally in all respects with the Company’s existing fully paid ordinary shares on issue.

The Company also will also apply for quotation of the new options on ASX

(note: there's a timetable in the PDF)