TIDMCAS
RNS Number : 3990L
Crusader Resources
24 December 2018
For immediate release
24 December 2018
Crusader Resources Limited
("Company" or "Crusader")
Additional funding
The Board of Crusader Resources Limited (ASX:CAS, AIM:CAS) is
pleased to announce that the Company has received subscriptions for
an issue of further secured convertible notes to raise an
additional A$0.5 million before costs ("Convertible Notes"),
bringing the total funds raised under the Convertible Notes to
A$1.4 million. The Board has approved the issue of a further A$0.1
million of Convertible Notes.
The proceeds from which the Convertible Notes will be used to
provide general working capital for the Company.
The principal terms of the Convertible Notes are set out further
below. The Company still intends to proceed with a pro rata
entitlement issue to eligible shareholders ("Entitlement Issue").
The quantum and pricing for the Entitlement Issue is being
finalised and the Board now expects to make a further announcement,
including publication of the prospectus for the Entitlement Issue
(together with a Notice of General Meeting), in January.
The Convertible Notes have a principal amount of A$100,000 each,
carry an interest rate of 8% per annum payable in new fully paid
ordinary shares ("Shares") at the 30-day volume weighted average
price of Crusader Shares (subject to a floor price equal to the
lower of A$0.01 or the Entitlement Issue price) and mature one year
from the date of issue, unless converted. The Convertible Notes
will be convertible into Shares in Crusader at a conversion price
of the lower of A$0.01 or the Entitlement Issue price at any time
up to 10 business days prior to the maturity date, at the election
of the note holder. The issue of Shares on conversion of the
Convertible Notes and payment of interest is subject to the receipt
of prior Crusader shareholder approval (at a General Meeting to be
convened in due course). In the event that shareholder approval is
not received, or certain other events occur, the principal amount
of the loans and accrued interest will become immediately repayable
to the investors in cash.
Convertible Note subscription by Stephen Copulos
Pursuant to today's Convertible Note issue, Eyeon Investments
Pty Limited (a company controlled by Stephen Copulos) subscribed
for A$200,000 in Convertible Notes on the terms set out above. In
aggregate, companies related to Stephen Copulos have now subscribed
for A$500,000 of Convertible Notes. At a conversion price of A$0.01
per share, the conversion of these Convertible Notes would result
in the issue of 50 million new shares (representing approximately
9.9 per cent of the current issued share capital of the Company.
Stephen Copulos is a related party under the AIM Rules as he is
both a former director within the last 12 months and a substantial
shareholder and the issue of conversion rights to the Convertible
Notes (which is subject to independent shareholder approval in due
course) is a related party transaction under the AIM Rules (as well
as the ASX Listing Rules).
The grant of security to the companies related to Stephen
Copulos is subject to the receipt of prior shareholder approval in
accordance with ASX Listing Rule 10.1.
Marcus Engelbrecht, Managing Director of Crusader said:
"I would like to thank investors for their continued support of
the Company through the issue of the convertible notes and ongoing
financing initiatives. The funds generated from the convertible
notes will provide additional working capital for the Company prior
to the completion of a Entitlement Issue that is expected to be
launched in 2019, following which, work on the Borborema Bankable
Feasibility Study will be accelerated."
The Directors of the Company consider, having consulted with the
Company's Nominated Adviser, that the terms of the transaction, and
in particular the proposed issue of conversion rights, are fair and
reasonable insofar as its shareholders are concerned. In forming
this view the Directors have taken into account the current
financial position of the Company, the subscription by independent
parties for the Convertible Notes and that the issue of conversion
rights and grant of security to the entities associated with
Stephen Copulos is subject to the approval of independent
shareholders and the issue of a fair and reasonable third-party
report in accordance with the rules of ASIC and ASX.
Special note concerning the Market Abuse Regulation
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
("MAR"). The person who arranged for the release of this
announcement on behalf of the Company was Marcus Engelbrecht,
Managing Director.
Website
A copy of this announcement is available from the Company's
website at www.crusaderresources.com
Enquiries:
Crusader Resources Limited
Mr. Andrew Beigel Office (Australia): +61 8 9320
CFO / Company Secretary 7500
Email: andrew@crusaderresources.com
Beaumont Cornish (Nomad) Tel: +44 (0) 20 7628 3396
Roland Cornish / Michael Cornish Email: corpfin@b-cornish.co.uk
Camarco (Financial PR) Tel: +44(0)20 3757 4997 / +44(0)20
Gordon Poole / Nick Hennis 3781 8330
/ Monique Perks
H&P Advisory (Joint Broker) Tel: +44 (0) 20 7907 8500
Neil Passmore / Andrew Chubb
/ Ernie Bell
Pinnacle Corporate Finance Tel: +61 8 6141 6306
(Corporate Adviser)
Andrew Frazer
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information included in this release constitutes forward-looking
statements. Often, but not always, forward looking statements can
generally be identified by the use of forward looking words such as
"may", "will", "expect", "intend", "plan", "estimate",
"anticipate", "continue", and "guidance", or other similar words
and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production
outputs.
Forward looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause the company's
actual results, performance and achievements to differ materially
from any future results, performance or achievements. Relevant
factors may include, but are not limited to, changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licences and permits and
diminishing quantities or grades of reserves, political and social
risks, changes to the regulatory framework within which the company
operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of
personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its
management's good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist
and affect the company's business and operations in the future. The
company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or
that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or
foreseeable by the company or management or beyond the company's
control.
Although the company attempts and has attempted to identify
factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual
results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the
reasonable control of the company. Accordingly, readers are
cautioned not to place undue reliance on forward looking
statements. Forward looking statements in these materials speak
only at the date of issue. Subject to any continuing obligations
under applicable law or any relevant stock exchange listing rules,
in providing this information the company does not undertake any
obligation to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions or
circumstances on which any such statement is based.
About Crusader
Crusader Resources Limited (ASX:CAS, AIM:CAS) is a minerals
exploration and development company listed on the Australian
Securities Exchange and the AIM Market of the London Stock
Exchange. Its major focus is Brazil; a country Crusader believes is
vastly underexplored and which offers high potential for the
discovery of world class mineral deposits.
Crusader has two key gold assets:
Borborema Gold Project
The Borborema Gold Project is in the Serido area of the
Borborema province in north-eastern Brazil. It is 100% owned by
Crusader and consists of three mining leases covering a total area
of 29 km(2) including freehold title over the main prospect
area.
The Borborema Gold Project benefits from a favourable taxation
regime, existing on-site facilities and excellent infrastructure
such as buildings, grid power, water, sealed roads and is close to
major cities and regional centres. The project's Ore Reserve
includes Proven and Probable Ore Reserves of 1.61Moz of mineable
gold from 42.4Mt @ 1.18g/t (0.4 & 0.5g/t cut-offs for oxide
& fresh). The measured, indicated and inferred Mineral Resource
Estimate of 2.43Moz @ 1.10g/t gold, remains open in all
directions.
Juruena Gold Project
The Juruena Gold Project is located in the highly prospective
Juruena-Alta Floresta Gold Belt, which stretches east-west for
>400km and has historically produced more than 7Moz of gold from
40 known gold deposits. Historically there is a database of more
than 30,000 meters of drilling and extensive geological data.
ENDS
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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