News: MCT Metalicity Requests Trading Halt, page-5

Metalicity Limited

(ASX: MCT)

Placement to raise ~$0.5million at $0.006 per share, with a further Rights Issue to raise ~$1 million at $0.006, to fund targeted drilling at Kookynie Gold Project

Metalicity Limited (ACN 086 839 992) (the Company) is undertaking an issue by way of placement of up to 43,831,778 new fully paid ordinary shares in the Company (Placement Shares) at an issue price of A$0.006 per Placement Share together with 1 free attaching option (exercisable at A$0.015, expiring 12 months from the date of issue) for every 5 Placement Shares subscribed for and issued to raise gross proceeds of approximately A$262,991 (Placement).

In the event of oversubscriptions, the Company reserves the right to place additional fully paid ordinary shares (Shares) and attaching options to raise up to approximately $250,000, with the additional placement to be a second tranche subject to shareholder approval (Oversubscriptions). The reference in this letter to Placement Shares will include Shares the subject of Oversubscriptions if these additional Shares are allocated.

The Company also intends to undertake a rights issue, by way of a prospectus, for an offer of 1 Share for every 4 Shares held, at an issue price of A$0.006, together with a 1 free attaching option for every 5 Shares subscribed for and issued (on the terms noted above) (Rights Issue). The Company will announce the Rights Issue at the same time as the Placement.

The subscribers to the Placement will not be registered on the record date for the Rights Issue. Therefore, any Placement Shares subscribed for under the Placement will not obtain an entitlement for the purposes of the Rights Issue. The Placement is to facilitate drilling at the Kookynie Gold Project, which forms part of our farm-in agreement with Nex Metals Exploration Limited as announced on 6 May 2019. Please refer to the attached document: Final_Kookynie & Yundamindra Farm In.pdf for further details.

The Offer

Offer Price of $0.006, which represents a:

• Discount of 25% to last close of $0.008 on 20 August 2019
• Discount of 25% to the 15 day Volume Weighted Average Price of $0.008

Use of Funds

The Placement will be predominantly used to fund the initial drilling at the Kookynie Gold Project (refer attached “Final_Kookynie Drilling Results.pdf” Announcement dated 31 July 2019), where Metalicity Limited is seeking to drill test the Exploration Target. The balance of funds will be used for working capital.

Metalicity Limited Highlights

Detailed below is a list of some of the recent highlights of Metalicity Limited:

• Exciting drilling results from the Kookynie Drilling Programme completed in July 2019 (refer attached “Final_Kookynie Drilling Results.pdf” announcement dated 31 July 2019).
• Kookynie Exploration Target demonstrates potential for a High-Quality Gold Project (refer to attached “Final_Kookynie Exp Target.pdf” announcement dated 23 May 2019).
• The appointment of Jason Livingstone to Managing Director, effective 1 July 2019, as the Company realigns itself as an explorer and developer. (Refer to attached “Final_Executive Changes.pdf” announcement of 22 May 2019).

Placement Timetable

	Milestone	Date
1	Return of Commitment Offer	5:00pm (AWST) Friday, 23 August 2019
2	Confirmation of Allocation	Wednesday, 28 August 2019*
3	Allotment of Placement Shares	Wednesday, 11 September 2019*
4	Expected Trading of Placement Shares	Monday, 16 September 2019*

*Please note that the above timetable is indicative only and may change without your consultation. You are bound by the agreement to subscribe for Placement Shares notwithstanding any such changes to the timetable.

Please also note, confirmation and timing of shortfall allocations to be confirmed with release of Prospectus.