I tried to get out before the capital raising which was...

I tried to get out before the capital raising which was imminent.

Number of shares on issue will double.

RENOUNCEABLE RIGHTS ISSUE
Key Points:
 The Company is undertaking a pro-rata renounceable offer to shareholders
 The pro-rata offer is on the basis of 1 share for every 1 share held at the record date
 The issue price is $0.10 each
 One free attaching New Option will be issued for every three New Shares subscribed
for
 The New Option will be exercisable at $0.10 and have a term of two years
 The New Option will carry a “piggy-back” Secondary Option: if the New Option is
exercised on or before 31 May 2010 it will be replaced with a Secondary Option
having an exercise price of $0.12 and a term of three years
 This rights issue will raise approximately $10,132,828, before costs
 Capital raised will be used to complete the recently announced acquisition of the
Razorback Magnetite Project and to undertake resource evaluation drilling of the
deposit
The Directors of Royal are pleased to announce a pro-rata renounceable rights issue to existing
shareholders of approximately 101.3 million New Shares on the basis of 1 New Share for every 1
Share held on the record date, at an issue price of 10 cents per share, together with approximately
33.8 million free attaching New Options, each having an exercise price of 10 cents and an expiry
date of 31 October 2011, on the basis of 1 New Option for every 3 New Shares issued, to raise
approximately $10,132,828, before costs. If a New Option is exercised between 3 May 2010 and
31 May 2010, the New Optionholder is entitled to receive a Secondary Option, each having an
exercise price of 12 cents and an expiry date of 31 October 2013 (Rights Issue).
The record date for determining entitlements under the Rights Issue is expected to be on or
around 21 October 2009 (Record Date). The final Record Date will be set and announced shortly.
The Rights Issue is expected to be fully underwritten by Paterson Securities Limited (Underwriter)
subject to the execution of formal documentation.
Royal is undertaking the Rights Issue to:
 complete the acquisition of the Razorback project as announced to the ASX on 16 September
2009;
 undertake geological mapping, geophysical surveying, surface sampling and resource
definition drilling to achieve a JORC-compliant Inferred Resource at the Razorback project
within two years;
ASX Announcement: ROY
8 October 2009
Page 2
Registered Office: Level 3, 1060 Hay Street, West Perth, 6005
PO Box 7525, Cloisters Square, Perth 6850, Western Australia
Phone: + 61 8 9322 8542 Fax: + 61 8 9322 6577
Email: [email protected] www.royalresources.com.au
 initiate an Economic Evaluation, fauna and flora, and hydrogeological studies to support
advancement of the Razorback project to feasibility study; and
 provide for administration costs and working capital.
The Directors of Royal have indicated that they will be taking up their entitlements and encourage
all shareholders to participate in the Rights Issue.
It is intended that the prospectus for the Rights Issue (Prospectus) will be lodged with the
Australian Securities and Investments Commission and announced to the ASX Limited (ASX) on
or about 13 October 2009.
Royal has determined, pursuant to Listing Rule 7.7.1(a) of the ASX, that it would be unreasonable
to make offers under the Prospectus to all countries outside of Australia and New Zealand.
Accordingly, in compliance with ASX Listing Rule 7.7.1(b), Royal will not be extending the Rights
Issue to shareholders located in all countries outside Australia and New Zealand.
It is anticipated that the Prospectus, together with a personalised Entitlement and Acceptance
Form, will be sent to all shareholders resident in Australia and New Zealand on or about the 27
October 2009. An Appendix 3B is attached.