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FRONTIER RESOURCES LTD. - INVITATION TO PARTICIPATE IN SHAREHOLDER SHARE PURCHASE PLAN AND SHORTFALL PLACEMENTS

July 11, 2014



ENP Newswire - 11 July 2014

Release date- 10072014 - Frontier Resources Ltd is a socially responsible, innovative and technically successful junior mineral explorer.

Frontier is focused on a highly prospective portfolio of intrusive and epithermal related gold, plus porphyry copper- gold -molybdenum hosting Exploration Licences in Papua New Guinea.

The Board of Directors has approved a Shareholder Share Purchase Plan (Plan) consisting of 50 million shares to be issued at 1.3c each, plus associated shortfall placements, to raise $650,000. The offer is open for two weeks.

Capital raised from the Share Purchase Plan / Shortfall Placements will be used to fund exploration and drilling that is planned to commence in September 2014 on Frontier's highly prospective Bulago EL, including: Exploration and diamond core drilling of a series of holes on the very high grade gold Swit Kia Prospect's Upper and Lower Zones, to demonstrate the orientation and thickness of the gold mineralization.

Drill holes on the East Creek strike extensions of the Swit Kia Prospects to further demonstrate the physical dimensions, gold grade and resource potential of the project.

Continue infill and strike extension trenching to define additional high grade gold drill targets. Drill a scout hole on a highly prospective gold target located 3km ESE of Swit Kia, in the Bulago basin.

Increase working capital.

Undertake limited evaluation of other ELs in PNG.

The Chairman/M.D. owns approx. 5.1% of Frontier, believes strongly in its future and will subscribe for $90,000.

1. SHAREHOLDERS ELIGIBLE TO PARTICIPATE IN THE PLAN

The right to participate in the Offer under the Plan is optional, but available exclusively to shareholders who are registered as holders of fully paid ordinary shares in the capital of Frontier (Shares) at 5:00 pm (WST) on the Record Date of 8/7/2014 and whose registered address is in Australia or New Zealand (Eligible Shareholders).

2. SHARE PURCHASE PLAN

The Board is pleased to offer an opportunity to all Eligible Shareholders to participate in the Plan. Details of the Offer are set out in this letter and the enclosed Terms and Conditions together with an Entitlement and Acceptance Form. The Plan entitles Eligible Shareholders in the Company, irrespective of the size of their shareholding, to purchase up to $15,000 worth of Shares, free of any brokerage and commission, at 1.3 cents per Share (Offer).

This price is equal to a 19% discount to the volume weighted average trading price of the Company's Shares on ASX during the 15 trading days immediately prior to the date of this offer. The average trading price of the Shares on the Australian Securities Exchange (ASX) during the 5 trading days immediately prior to the announcement date of this Offer was 1.6 cents and closing price on 8/7/2014 was 1.7 cents.

3. CURRENT PROJECTS

Details of Frontier's current activities are set out in the announcements made by the Company to the ASX and are available from the ASX or the company's website at www.frontierresources.com.au.

4. SUBSCRIPTION AND APPLICATION PROCEDURE

If you would like to participate in the Offer, please return your completed Entitlement and Acceptance Form (enclosed), together with your cheque or BPAY for the subscription monies for the Shares you wish to acquire to Computershare Investor Services, on or before the Closing Date of 5:00 pm (WST) on 30th July 2014. No late applications will be accepted.

Please note the maximum investment per shareholder is $15,000 and the minimum investment is $100.

The number of Shares you receive will be calculated by dividing the subscription price/ amount you have elected to purchase by the noted price per Share. The maximum investment any one 'shareholder' may apply for will remain $15,000 (even if that shareholder receives more than one Offer).

It is possible to have shares in several entities (personal names, superfund, trust, company etc) and these can each exercise their own subscription of shares to the maximum $15,000 allowable. The Chairman / Managing Director will subscribe for $90,000 though 6 entities with cash in the SPP and a subsequent Placement [to be approved by shareholders] for the retirement of April-July 2014 personal exertion debt.

5. ADDITIONAL INFORMATION AND IMPORTANT DATES

The Offer cannot be transferred and the Directors of the Company reserve the right to reject any application which does not comply with the conditions. Shares allotted under the Plan will be issued as soon as practicable after the Closing Date of the Offer. Application for quotation on ASX of the new Shares will be made immediately following the issue of those Shares.

The maximum number of Shares that may be issued pursuant to this Offer is 50,000,000, raising up to $650,000. In the event of an oversubscription by the Closing Date the Directors may, in their absolute discretion, either accept applications in order of receipt or scale-back all applications on a pro-rata basis. If the Company rejects or scales back an application or purported application, the Company will promptly return to the shareholder the relevant application monies, without interest.

6. ACCEPTANCE OF RISK FACTORS

On the trading day immediately prior to the announcement date of the Offer, the closing price of the Shares traded on ASX was 1.7 cents. The market price of the Shares in the Company may rise /fall between the date of the Offer and the date that any Shares are allotted. This means that the subscription price you pay for the Shares may exceed the market price of the Shares at the date of allotment of Shares under this Offer.

By accepting the Offer and applying for Shares under the Plan, each Eligible Shareholder will be acknowledging that although the purchase price is at a discount to the market price, Shares are a speculative investment.

The price of Shares on ASX may change between the date of the Company announcing its intention to make an Offer and the date of issue of Shares under that Offer so that the price and/or value and/or number of the Shares received under the Plan may rise or fall accordingly. The Board recommends that you obtain your own financial advice in relation to the Offer and consider price movements of Shares in the Company prior to accepting this Offer.

7. SHORTFALL PLACEMENT

If less than 50 million Shares are applied for in this Offer, the shortfall may be placed at the discretion of Directors.

Contact:

Jay Stephenson

Company Secretary

Frontier Resources Ltd

Tel: +61 8 6141 3500


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Source: ENP Newswire


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