2010 Share Purchase Plan
Further to the company’s announcement to the ASX on 29 Novemebr 2010, I am pleased to confirm that Adelaide Resources Limited (ADN) will conduct a Share Purchase Plan (SPP) to provide Eligible Shareholders with an opportunity to subscribe for new fully paid ordinary shares in the capital of ADN (New Shares) in parcels of $2,000 (10,810 shares), $5,000 (27,027 shares), $10,000 (54,054 shares) or a maximum of $15,000 (81,081 shares), without paying brokerage.
Participation in the SPP is optional and is open to shareholders who, at Friday 26 November 2010, are registered as holders of fully paid ordinary ADN shares and whose address on the share register is in Australia or New Zealand (Eligible Shareholders).
The issue price per share under the SPP will be 18.5 cents per share, which is an 18.8% discount to the volume weighted average market price of fully paid ordinary ADN shares sold on ASX during the five trading days immediately preceding the date of this announcement.
A maximum of $4 million worth of New Shares will be issued. The company may scale back applications under the SPP if the total value of the New Shares applied for exceeds $4 million. If there is a scale back, New Shares will be allotted at the sole discretion of the Board of Directors. The SPP will not be underwritten.
If the SPP is fully subscribed, the Company estimates it will have cash holdings exceeding $11 million by 31 December 2010. The majority of the funds raised from the SPP will be directed to the Rover Gold-Copper Project, located near Tennant Creek in the Northern Territory, allowing the continuation of an aggressive drilling program through calendar year 2011 and into 2012.
Recent drilling at the Rover Project has focused on that part of the Rover 1 deposit which falls in the Company’s tenement, and at the nearby wholly owned Rover 4 prospect. At both prospects this work confirms the presence of large volumes of prospective rock that in places hosts potentially economic zones of copper and gold mineralisation, with this mineralisation demonstrating the continuity required to establish resource estimates. While Rover 1 and Rover 4 represent the most advanced prospects within the Rover Project, numerous other confirmed Tennant Creek style prospects and untested targets are present and offer excellent additional exploration opportunities.
Funds will also be allocated to the Moonta Copper-Gold Project on the Yorke Peninsula in South Australia where exploration is scheduled to recommence in January 2011, and to meet the costs of the planned 2011 Peninsula Resources Limited spin-off.
SPP Offer Key Dates and the terms and conditions of the SPP Offer are contained in the ASX announcement.
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