SPP Details
Chairman’s Letter
21 March 2018
Dear Shareholder
Northern Cobalt Limited Share Purchase Plan
On behalf of the board of directors (Board) of Northern Cobalt Limited (ACN 617 789 732) (Company), I am pleased to offer eligible shareholders with the opportunity to subscribe for up to $15,000 of new fully paid ordinary shares in the Company (New Shares), free of brokerage and commission, under a Share Purchase Plan (SPP or Plan).
The right to participate in the Offer under the Plan is optional and is available exclusively to shareholders who are registered as holders of fully paid ordinary shares in the capital of the Company (Shares) at 7:00 pm (AEDT) on 13 March 2018 and whose registered address is in Australia or New Zealand (Eligible Shareholders).
The SPP is targeting to raise $1.0 million. If total demand for the SPP exceeds $1.0 million, then the Company reserves the right to close the SPP early and scale back applications or elect to increase the amount raised under the Plan.
The Company recently announced that it had raised approximately $3.0 million from a heavily oversubscribed Share placement to professional and sophisticated investors (Placement). These Shares were issued at a price of $0.35 (35 cents) per Share. The SPP issue price is 35.0 cents per New Share which is the same price as the Placement and a 13.17% discount to the volume weighted average price of Shares over the last 5 days on which sales of the Shares were recorded by ASX Limited prior to the date of the announcement of the SPP on 14 March 2018.
It is intended that the funds raised from the SPP will be used as follows:
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(a) further exploration at the Wollogorang Cobalt Project;
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(b) studies relating to the potential development of the Stanton Cobalt Project;
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(c) exploration at the Company’s newly acquired Arunta Lithium & REE Project;
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(d) assessment and acquisition of further battery metals opportunities; and
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(e) working capital to enable the Company to support its current operations.
Details of the Plan are set out in the Terms and Conditions and the personalised application form enclosed with this letter. The Board urges you to read these Terms and Conditions carefully and in their entirety before deciding whether or not to participate in the Plan. If you are uncertain whether New Shares are a suitable investment for you, then you should consult your financial or other professional adviser.
On behalf of the Board, I invite you to consider this opportunity to increase your investment in the Company.
Yours faithfully
Leonard Dean
Chairman
NORTHERN COBALT LIMITED
Download the full SPP Document here
