Western Yilgarn NL (WYX) is undertaking a pro-rata non-renounceable entitlement issue to raise approximately $79,352 before costs. The offer consists of one new option for every four shares held by eligible shareholders, priced at $0.001 per new option, aiming to raise about $34,460. A concurrent pro-rata offer extends to eligible option holders, granting one new option for each unquoted WYXAF option held, at the same issue price, potentially raising an additional $44,892, subject to shareholder approval.
The new options are exercisable at $0.10 and expire three years from the initial issue date. The funds raised are intended for covering offer expenses and bolstering the company’s general working capital. Directors, holding existing securities, intend to fully subscribe to their entitlements.
The offers will not dilute non-participating securityholders, as it involves the issue of options only. However, exercise of these options would result in dilution. The company intends to apply for official quotation of the new options on the ASX, though there’s no guarantee of approval. Key risks include additional capital requirements, exploration risks, development risks, operating risks, tenure risks, and government and regulatory risks. The company’s projects are at various stages of exploration, and potential investors should understand that mineral exploration and development are high-risk undertakings.
The Company’s capital structure, assuming full subscription and no prior conversion of other securities, will result in an increase in the number of Options on issue from approximately 27,124,586 immediately prior to completion of the Offers to approximately 106,476,769 following completion of the Offers. This strategic move aims to reward loyalty and enhance working capital for advancing exploration projects.
