Brisbane, Nov 18, 2008 AEST (ABN Newswire) - The Board of Kangaroo Metals Limited (ASX:KML) has accepted an offer by a consortium of investors (Consortium) to recapitalise the Company that will result in sufficient cash being injected into the Company to support the future operations.
The proposal from the Consortium can be summarised as follows:
(a) the Company will consolidate its existing shares on issue on a 1 for 2 basis;
(b) the Company will undertake the following capital raisings:
(i) an initial raising constituting the issue of up to 70,000,000 shares at an issue price of $0.001 each together with 140,000,000 free options to acquire shares (with an exercise price $0.01 each and a 4 year expiry from the date of issue) to raise $70,000; and
(ii) the issue of up to 200,000,000 shares at an issue price of not less than $0.01 each to raise up to a further $2,000,000. Existing Shareholders will be given the opportunity to participate in this capital raising through an entitlement to subscribe for two (2) Shares for every one (1) Share they hold (on a post consolidation basis); and
(c) new Directors nominated by the consortium will be appointed to the Board.
The Consortium has agreed to accept responsibility for the capital raisings referred to above.
In addition to injecting funds into the Company, the Board believes the Consortium can introduce a number of potential acquisitions and strategic relationships that will assist in expanding the Company's existing core business in the mineral sector.
The Board is pleased that this group of investors will inject new life into the Company.
The recapitalisation proposal is subject to shareholder approval and a Notice of Meeting which will be mailed to shareholders in due course. The Company expects the shareholder meeting to take place o in late December 2008 or early January 2009.
Contact
Dr Brett Teale
Managing Director
WEB: www.kangaroometals.com.au
TEL: +61-7-3161-0397
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