Start of Something Big, page-3

From the announcement on 20/10/2014


Capital Raising
As previously announced the Company will undertake a capital raising between $3.5 million and $6 million before costs pursuant to a prospectus is contemplated as part of the transaction. The minimum raising of $3.5 million will be arranged on a best endeavours basis by Novus Capital Ltd. Novus have confirmed their full support to the Board for the acquisition and financing of this project. Existing shareholders will be given the priority right to top up their shareholdings ($2,000 per shareholder) pursuant to the prospectus

Consolidation of Capital
As part of the transaction, and subject to the approval of shareholders, the Company will undertake a consolidation of its capital at a ratio of around 67:1 to meet ASX Listing Rule requirements.

Change of Activities
The Company’s proposed acquisition of Balama and its Diamond Licence acquisitions through Sese Diamonds Pty Ltd (“Sese”) and Save River Diamonds Pty Ltd (“Save”) will result in a change in the Company’s nature and scale of activities, and require shareholder approval under Chapter 11 of the ASX Listing Rules as well as requiring the Company to re-comply with Chapters 1 and 2 of the ASX Listing Rules. The Company will despatch to shareholders as soon as practicable a notice of meeting seeking the relevant approvals to undertake this process, with such notice of meeting to contain detailed information relating to the acquisition of Balama, SRD and Sese, including independent experts’ reports on the transactions.

Change of Name
It will be proposed that the Company changes its name to reflect the proposed principal focus on diamond & graphite exploration and mining.