non renounceable pro rata issue

Non-Renounceable Pro Rata Issue

Announced by: EBR
Announced on: 16/01/2007 12:51:54
Words: 803
Status: Market sensitive (Y)
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Eagle Bay Resources N.L. Company Announcement
ACN 051 212 429

First Floor, 610 Murray Street, West Perth 6005 Telephone: (08) 9481 3322
PO Box 913 West Perth Western Australia 6872 Facsimile: (08) 9481 3330
[email protected]


Date: 16th January 2007
To: Companies Announcements Office, ASX
Electronic Lodgement:
Subject: NON RENOUNCEABLE PRO RATA ISSUE
Number of pages: 2


NON RENOUNCEABLE PRO RATA ISSUE

The Directors of Eagle Bay Resources NL advise that the Company has entered into an
underwriting agreement with Kefu Underwriters Pty Limited (Kefu) for a Non Renounceable
Pro Rata Issue on the basis of one share for every four shares held at a price of 6 cents for
every new share with a free attaching option.

The Company's existing capital structure and the basic sequence of events for the proposed
issue of shares is outlined as follows:

1. The Company currently has on issue 230,577,999 shares plus 31,288,345 listed options
and 3,250,000 unlisted options.

2. The Company will lodge a Prospectus for the Non Renounceable Pro Rata Issue shortly.
A prospectus and entitlement form will be sent to all shareholders at the Record Date,
which will be advised shortly.

3. In accordance with ASX Listing Rules a minimum notice of 7 business days must be
given to shareholders of the Record Date to identify shareholders able to participate in
the Pro Rata Issue.

4. The Pro Rata Issue, which is fully underwritten, on the basis of one share for every four
shares held at the record date, will result in approximately 57,644,500 shares being
issued at 6 cents each raising a total of approximately $3,458,670 less capital raising
costs.

5. The options to be issued with the new shares will entitle the holder to subscribe for one
fully paid share upon payment of 15 cents per share on or before 30 June 2009 and are
identical to listed options currently on issue (ASX code: EBROA).


The Underwriter has the right to nominate and determine, in its absolute discretion, who is to
receive the shortfall, if any. The Underwriter will be paid a fee of 5% of the amount raised
which is equivalent to a fee of approximately $172,935.




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In accordance with ASX Listing Rules the Company advises the following:

7 ses of securities to be issued are ordinary fully paid shares (EBR) and listed
options (EBROA).

7 The number of securities to be issued is approximately 57,644,500 shares and
57,644,500 options under the Pro Rata Issue with entitlements being rounded up.

7 The principal terms of the shares are that they are ordinary fully paid shares ranking
equally with all fully paid shares on issue.

7 al terms of the options are that they are listed options ranking equally
with currently listed EBROA options on issue.

7 The Non Renounceable Pro Rata Issue does not require shareholder approval
because the issue will be made to existing shareholders on the register at the Record
Date.

APPLICATION OF FUNDS

The funds to be raised by this issue will be applied principally to the Cooper Basin drilling
program. Details will be contained in the Prospectus.

Full details of the Company's planned activities in these exploration areas is set out in the
September quarterly activities report previously lodged with ASX.

Yours Faithfully





_____________________
Anthony Rechner
Director





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Regards The Tinhopper.