Shree Minerals (ASX:SHH) shareholders to get priority offer from MetalsGrove Mining

Be the First to Comment Read
Sponsored

Shree Minerals (ASX:SHH) shareholders to get priority offer from MetalsGrove Mining

 Shree Minerals (ASX:SHH) shareholders to get priority offer from MetalsGrove Mining
Image source: © Ileezhun | Megapixl.com

Highlights

  • Shree Minerals shareholders will receive a priority offer from MetalsGrove Mining Limited’s initial public offering (IPO).
  • The priority offer is available for all the eligible shareholders of SHH, residents in Australia.
  • In January 2022, Shree executed a Sale and Purchase Agreement with MetalsGrove to divest its stake in the Arunta JV with Territory Lithium.

In a positive update, Shree Minerals Limited (ASX:SHH) announced that its shareholders will receive a priority allocation in MetalsGrove Mining Limited’s initial public offer (IPO).

As per Shree Minerals, MetalsGrove has agreed to make a priority allocation to eligible SHH shareholders of up to a total of 5 million fully paid ordinary shares in the capital of MetalsGrove at an issue price of AU$0.20 for a maximum of AU$1 million.

Interestingly, MetalsGrove lodged its prospectus on Friday in association with its IPO of up to 35 million shares to raise a minimum of AU$5 million and a maximum of AU$7 million.

Must Read: Shree Minerals (ASX:SHH) outlines growth opportunities across portfolio

Divestment of Arunta Joint Venture (JV)

In January 2022, Shree executed a Sale and Purchase Agreement with MetalsGrove for the divestment of its interest, title, and rights in the Arunta joint venture with Territory Lithium. The Arunta JV consists of various projects including Bruce Gold, Edwards Creek, and Box Hole stretching over EL31225, EL32419, and EL32420 tenements, respectively.

Regional location of Arunta JV Project

Source: Company Announcement (7 January 2022)

The divestment of interests in the Arunta JV comes as a strategic move for SHH as it would allow the miner to concentrate its efforts on existing-high priority exploration projects located in Western Australia and New South Wales.

Good Read: Shree Minerals Ltd. (ASX:SHH) galloping on the gold and iron ore opportunities

MGA Priority offer: An investment opportunity

The priority offer is available for all eligible SHH shareholders, who reside in Australia, and were named on Shree Minerals' register of members as of 5:00 pm (WST) on Friday. The priority offer will be a part of the Public Offer.

If MetalsGrove receives applications from eligible Shree Minerals Shareholders for more than 5 million shares, it will implement a customary scale-back of applications under the Priority Offer. This will have reference to the pro-rata shareholdings of Eligible SHH shareholders and will be subject to a minimum allocation of AU$2,000 per applicant.

Good Read: Shree Minerals (ASX:SHH) to sell stake in Arunta JV to MetalsGrove Mining

As per MetalsGrove, any applications in excess of 5 million shares will be treated as additional applications under the Public Offer.

SHH shareholders will be sent a link to the prospectus with instructions on how to apply for MGA shares.

Furthermore, the Company also stated that the closing date for the Priority Offer is 5:00 pm (WST) on 6 June 2022.

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK