GMM: NON RENOUNCEABLE RIGHTS ISSUE TO RAISE A$0.87 AT 0.5C
July 27 -- On 31 January 2012, General Mining Corporation Limited (ASX: GMM) (General Mining Corporation or the Company) announced to the market that it was proceeding with a non-renounceable rights issue (Rights Issue) of one (1) fully paid ordinary share (New Share) for every five (5) fully paid ordinary shares held on the record date, which has been set as 5:00pm (WST) on Wednesday, 8 August 2012 (Record Date), to shareholders with a registered address in Australia or New Zealand (Eligible Shareholders). Full details of the Rights Issue are set out in a prospectus, which was lodged with ASIC today (Prospectus).
Pursuant to the Rights Issue, the Company will issue up to 17,406,925 New Shares at an issue price of $0.05 each to raise approximately $0.87 million (before issue costs). New Shares under the Rights Issue will rank equally with the Company's existing fully paid ordinary shares and the Company will apply for quotation of the New Shares.
In addition, subscribers in the Rights Issue will receive one free attaching op (New Option) (which will be quoted, subject to ASX approval) for every New Share subscribed for, to be granted in three tranches as follows:
a) the first tranche, comprising approximately 5,802,309 New Options, exercisable at $0.075 expiring 3 September 2013;
b) the second tranche, comprising approximately 5,802,308 New Options, exercisable at $0.10 expiring 3 September 2014; and
c) the third tranche, comprising approximately 5,802,308 New Options, exercisable at $0.125 expiring 3 September 2015.
The terms and conditions of the New Options will be described in the Prospectus. Investmet Limited (Investmet) has been appointed to act as underwriter to the Rights Issue. The terms of appointment, including fees payable, are set out below and in the prospectus. The funds raised under the Rights Issue, along with funds already raised by way of the sophisticated investor placement (refer to the Notice of General Meeting dated 9 May 2012), are intended to be used as follows:
Pursuant to the Rights Issue, the Company will issue up to 17,406,925 New Shares at an issue price of $0.05 each to raise approximately $0.87 million (before issue costs). New Shares under the Rights Issue will rank equally with the Company's existing fully paid ordinary shares and the Company will apply for quotation of the New Shares.
In addition, subscribers in the Rights Issue will receive one free attaching op (New Option) (which will be quoted, subject to ASX approval) for every New Share subscribed for, to be granted in three tranches as follows:
a) the first tranche, comprising approximately 5,802,309 New Options, exercisable at $0.075 expiring 3 September 2013;
b) the second tranche, comprising approximately 5,802,308 New Options, exercisable at $0.10 expiring 3 September 2014; and
c) the third tranche, comprising approximately 5,802,308 New Options, exercisable at $0.125 expiring 3 September 2015.
The terms and conditions of the New Options will be described in the Prospectus. Investmet Limited (Investmet) has been appointed to act as underwriter to the Rights Issue. The terms of appointment, including fees payable, are set out below and in the prospectus. The funds raised under the Rights Issue, along with funds already raised by way of the sophisticated investor placement (refer to the Notice of General Meeting dated 9 May 2012), are intended to be used as follows:
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