News Column

Ord River Resources Ltd. - Renounceable Issue

July 8, 2014



ENP Newswire - 08 July 2014

Release date- 04072014 - Ord River Resources Ltd ACN 108 737 711 is pleased to announce a new renounceable pro-rata entitlement issue.

Ord invites its shareholders who are registered with Ord's share registry as at 5:00pm (Sydney time) on 10 July 2014 (Record Date) and who have a registered address in Australia or New Zealand (Eligible Shareholders) to participate in a pro-rata renounceable entitlement issue on the basis of:

1.21 fully paid ordinary shares in Ord (New Shares) for every 1 ordinary share held in Ord, at an issue price of 0.2 cents per New Share (Issue Price) and

1 attaching unlisted option to acquire a fully-paid ordinary share in Ord - each exercisable at 0.3 cents per share on or before 1 February 2016 - for each New Share subscribed for, (Rights Issue).

Eligible Shareholders will also have the opportunity to apply for additional New Shares in excess of their full entitlement and to receive Attaching Options in respect of such additional New Shares.

Ord will apply to ASX for official quotation of all New Shares issued under the Rights Issue. The Attaching Options will not be quoted on an exchange.

The Rights Issue will result in the issue of up to 1,506,253,9151

New Shares and 1,506,253,915 Attaching Options and will raise approximately $3.0 million before costs and expenses.

The Rights Issue is, subject to certain terms and conditions, fully underwritten by Patersons Securities Ltd. The Rights Issue is sub-underwritten to a total aggregate amount of $2.53 million. Of this, members of the board of directors and management of ORD and current large shareholders of ORD have agreed to sub-underwrite the Offer to an aggregate amount of $1.33 million, of which $250,000 is being sub-underwritten by myself and $50,000 is being sub underwritten by ORD's Executive Deputy Chairman, Mr Bruce McInnes.

The Issue Price represents a 38.5% discount to the volume weighted average price of Ord ordinary shares on the ASX over the 30 ASX trading days prior to the date of this announcement and a 33.3% discount to Ord's closing price on the ASX on 30 June 2014 (the trading day before Ord's shares were placed in a trading halt pending the announcement of the Rights Issue).

As the Rights Issue is renounceable, Eligible Shareholders who do not wish to subscribe for some or all of their full entitlement to New Shares and Attaching Options (Rights) may sell those Rights from 8 July 2014 to the close of ASX trading on 18 July 2014 in order to realize any value which may attach to those Rights.

If you are an Eligible Shareholder who chooses to do nothing with or fails to exercise your Rights by 5.00pm (Sydney time) on the closing date of the Rights Issue (being 25 July 2014), your interest in Ord is likely to be significantly diluted and you will receive no value for your Rights.

The offer to participate in the Rights Issue is not being made to Ord shareholders who have a registered address with Ord's share registry outside Australia or New Zealand (Excluded Shareholders). As a result, the percentage interest of Excluded Shareholders in Ord is likely to be significantly diluted as a result of the implementation of the Rights.

However, the entitlements that Excluded Shareholders would otherwise have been entitled to exercise under the Offer, had they not been Excluded Shareholders, will be offered for sale by Patersons Securities Limited (AFSL: 239052) (Sale Nominee) and the net proceeds of sale will be distributed by the Sale Nominee to the Excluded Shareholders in their respective proportions.

If for any reason the Plutonic Dome Project Farm-in is terminated before the Rights Issue is completed or, if completed, before the funds are expended (wholly or in part) in that venture, it is Ord's current intention that the Rights Issue will nevertheless proceed and the funds raised (after deducting the costs and expenses of the Rights Issue) will be held by Ord to enable it to consider and effect other opportunities for investment (including but not limited to projects similar to the Plutonic Dome Project Farm-in).

Prospectus

The Rights Issue is being made pursuant to a Prospectus under section 713 of the Corporations Act 2001 (Cth) (the Act), which was lodged with the Australian Securities & Investments Commission (ASIC) this morning.

The Prospectus is a transaction specific prospectus and therefore, broadly speaking, contains only information in relation to the effect of the issue of securities on Ord and the rights attaching to the securities the subject of the Rights Issue.

This Prospectus is intended to be read in conjunction with publicly available information in relation to Ord which has been notified to ASX and does not include all of the information that would be included in a prospectus in connection with an initial public offering.

Shareholders should therefore have regard to other publicly available information in relation to Ord before making a decision as to whether or not to exercise their Rights under the Rights Issue. Shareholders may view all of Ord's ASX releases from the ASX website (www.asx.com.au) (ASX code: ORD). Additional information on Ord and its projects is available from Ord's website (www.ord.com.au).

Actions Required by Eligible Shareholders

If you are an Eligible Shareholder who wishes to subscribe for some or all of your Rights (and, if applicable, additional New Shares and Attaching Options) you will need to complete the personalised Entitlement and Acceptance Form that will accompany the Prospectus and return it, with the appropriate application moneys, to Ord's share registry before 5:00pm (Sydney time) on or before the anticipated closing date of the Rights Issue of 25 July 2014.

If you are an Eligible Shareholder who does not intend to subscribe for some or all of your Rights you may seek to sell those Rights on the ASX from 8 July 2013 to the close of ASX trading on 18 July 2014 (inclusive). To sell any of your Rights on the ASX you must provide appropriate instructions and information to your sharebroker.

If you wish to transfer some or all of your Rights to a person, other than by trading on the ASX, you must complete a standard renunciation form (available from your sharebroker) and lodge it with your sharebroker together with the applicable transferee's cheque for the total subscription price of the New Shares and Attaching Options subscribed for.

If you are an Eligible Shareholder who chooses to do nothing with or fails to exercise your Rights, you will continue to hold the same number of ordinary shares in Ord. However your interest in Ord is likely to be significantly diluted and you will receive no value for your Rights.

Contact:

Ord River Resources Limited

Suite 2, Level 5,

71 Macquarie Street

Sydney, NSW 2000

Tel: +61 2 8004 6667


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Source: ENP Newswire


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