Investors in Europe, Asia and Australia can now take part in Kimberley Mining’s seed capital raising with the upcoming Canadian-listed vehicle opening the doors to investors in these jurisdictions for subscriptions for up to a further C$1 million (A$1 million) in seed capital.
The offer – for a total of C$3 million – has now been made available to qualifying investors in these jurisdictions through the Canadian broker, Haywood Securities, an affiliated European, Asian or Australian broker, or direct through Kimberley Mining.
Funds raised are intended to be used to progress Kimberley’s TSX-V listing, project development, vendor payments and for working capital.
Metalicity previously reported that Kimberley would be issuing shares under its seed capital raising. However, following a minor change to the offer terms, the company will instead be issuing “special warrants” to investors priced at C$0.40 each.
The special warrants will be automatically exercised upon the subsequent filing of a prospectus in Canada. Each special warrant will be converted into one common share of Kimberley for no additional consideration.
Metalicity is vending its Admiral Bay, Napier Range and Emanuel Range zinc projects into Kimberley Mining which will net the company around A$33 million in cash and scrip.
The company will retain around 40% of the expanded capital of Kimberley Mining post the Initial Public Offering (IPO) on the TSX-V and the targeted C$25 million capital raising which will be used to advance drilling and feasibility studies at Admiral Bay.
Metalicity believes the spin-out of Admiral Bay will benefit its shareholders claiming it is fundamentally undervalued on the ASX with Enterprise Value Per Tonne (EV/T) of a peer group of base metals assets and companies (with ownership of Admiral Bay’s scale) listed on the TSX-V much higher than on the ASX.
Shares in Metalicity were last trading at 2.1c on Tuesday.