Classic Submits Call Notice to LDA Capital
Perth, July 6, 2023 AEST (ABN Newswire) - WA-focused gold mining company, Classic Minerals Limited (
ASX:CLZ) (2I7:FRA) (CSMRF:OTCMKTS) has submitted a capital Call Notice to LDA Capital Limited (LDA Capital) targeting a AUD $550,000.00 equity draw-down under the terms of its strategic $15 million Put Option Agreement (Agreement or Facility) with the US-based financier. (See ASX Announcement dated 15 December 2022). Chairman John Lester said the final pricing and amount to be raised would be determined in accordance with the terms and conditions of the Agreement in the next few weeks.
Classic has now issued a Call Notice on LDA Capital to draw down under this Facility to progress the Kat Gap gold project into production and intends to put 550 million Shares to LDA Capital. LDA Capital had as per ASX announcement of 18 May 2023 103,411,656 Collateral Shares which remain unsubscribed. Therefore, Classic will be issuing 446,588,344 shares to make up a total of 550,000,000 shares.
Under the terms of the LDA Facility, Classic may, subject to certain conditions precedent, issue call notices to LDA Capital to subscribe for fully paid ordinary shares in Classic, up to a maximum of 10 times the average daily number of the Company's shares traded on the ASX during the 15 trading days before the issue ofthe Call Notice.
The issue price of the Shares will be calculated as the higher of 90% of the 30-day Volume Weighted Average Price (VWAP) after the issue of the Call Notice, and the 'minimum acceptable price (as defined in the LDA facility) notified by Classic to LDA Capital, in each case subject to adjustments for various factors. Under the terms of the Facility, LDA Capital must subscribe for a minimum of 50% and a maximum of 200% of the Shares put to LDA Capital.
About Classic Minerals Limited
Classic Minerals Limited (ASX:CLZ) is an exploration and development company focused on gold deposits in Western Australia's famous Goldfields region. In March 2017, Classic acquired the Forrestania Gold Project, with seven tenements stretching across 450km2. Strategically located in a very prospective region, the FGP is an underexplored package surrounded by multimillion ounce deposits such as Bounty (2Moz) and Yilgarn Star (1.5Moz).
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