Security Purchase Plan and Letter to Shareholders
Auckland, May 6, 2015 AEST (ABN Newswire) - Letter to Shareholders by Managing Director Charles Murphy: I am pleased to offer you a limited opportunity to purchase new shares at a discount to the record date in Strategic Elements (
ASX:SOR) prior to increasing our activities in both the resources and technology sectors.
As you are a current shareholder, you are eligible to acquire discounted shares under our Share Purchase Plan ("the Plan").
You are eligible to purchase a maximum of $10,000 of shares at 3 cents.
The share price as at the Record Date was 4 cents.
The offer is capped to a total of $750,000 and applications will be accepted on a first received basis.
There is no need to return the application form if you elect to pay by BPAY. Please use the reference code printed on the attached application form.
The Plan closes 5.00pm on 28 May 2015.
This comes at an exciting time in the Company's development, with recent announcements outlining a calculated strategy designed to position the Company for future growth. The Company's special registration by the Australian Federal Government means most shareholders pay no tax on capital gains when selling their shares.
The Plan also provides a unique opportunity to average down your buy price in the Company. For example, a shareholder who bought $2,000 of shares in the IPO could bring their weighted average price down from 20 cents to 5.2 cents by purchasing $2,000 worth of shares under this Share Purchase Plan. Please note the 52-week high share price is 9 cents whilst at that time the Company was solely focused on its Golden Blocks project in New Zealand.
The Company has recently announced its intention to widen its resources and technology activities. Funds raised under the Plan will be used for:
- Strategic Materials Pty Ltd: As announced the 100% owned Investee Company has resolved to conduct a drilling program targeting the potential continuation of the Pioneer Shoot being mined on Level 4 in 1914. Whilst licenses and approvals are being sought exploration will continue to generate a 3D Mine Model, position intended drill holes and continue surface exploration on exciting targets along strike from the Aorangi Mine and at other locations outlined by prior fieldwork/structural studies. Work is starting immediately on the 3D Mine Model.
- Dr Pirajno Collaboration: The Company has formed a new collaboration with one of Western Australia's most respected economic geologists who recently retired after 21 years with the Western Australian government. The collaboration with Dr Franco Pirajno has been formed to conduct frontier exploration in Western Australia targeting areas that may have seen basic mapping by the Western Australian government but limited commercial exploration. Importantly these areas will have potential for styles of mineral deposits more commonly known overseas.
Previous to his long tenure with the Western Australian government where he spent extensive time in the field, Dr Pirajno had a successful career with the large multinational Anglo American Corporation of South Africa in Africa and Australasia.
This cumulated with his appointment as Exploration Manager for the New Zealand and the SW Pacific, Dr Pirajno was also part of the team that successfully made several copper discoveries in Africa during his time with Anglo. Dr Pirajno has extensive experience mapping and studying mineral systems in many different countries around the world and is uniquely qualified to oversee the technical team. The Company is currently securing projects.
- Australian Advanced Materials Pty Ltd: As announced the 100% owned Investee Company is continuing to actively assess various technology investments. AAM is currently negotiating a licensing agreement for an Australian technology, with nothing having been agreed to date.
- Supplementing the working capital of the Company.
Key Features of The Plan
Under the Plan, Australian and New Zealand shareholders on the register as at 5.00pm on 01 May 2015 can subscribe for up to $10,000 worth of shares at 3 cents each without brokerage or other costs. Key features of the Plan include (a) you are eligible to purchase shares to the value of $10,000, $7,500, $5,000, $2,500, $2,000, $1,500 or $1,000 (b) applications are treated on a first received basis up to a total of $750,000 (c) the Plan closes on 28 May 2015 (d) shares under the Plan are expected to be issued on or about 02 June 2015
The issue price was calculated having regard to the Company's circumstances and represents a 33% discount to the closing price on the Record Date but not less than 80% of the volume weighted average price for the Company's Shares calculated over the last 5 days on which sales of Shares took place prior to the Plan being announced.
Details of the Company's current activities are set out in the announcements made by the Company to ASX and are available from ASX, or the Company's website at www.strategicelements.com.au. You should read the attached Terms and Conditions carefully before participating in the Plan.
There is no need to return the application form if you elect to pay by BPAY. Please use the reference code printed on the attached application form.
Applications will be accepted on a first received basis. If you wish to participate in in the Plan, please submit your application to the Company as soon as possible.
The Shares issued under the Plan will be quoted on ASX.
Please contact Executive Director Matthew Howard on +61 8 9278 2788 or email admin@strategicelements.com.au if you have any questions on how to subscribe for shares.
Yours Sincerely,
Charles Murphy
Managing Director
Strategic Elements Ltd
To view the Schedule of Dates and Offer, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOR-718710.pdf
About Strategic Elements Ltd
Strategic Elements (ASX:SOR) shares are listed on the Australian Stock Exchange under the code “SOR”. The Company is registered under the Pooled Development Program run by the Australian Federal Government to encourage investment into SME’s. To assist Pooled Development Fund’s to invest and raise capital, the Federal Government enables most shareholders in a Pooled Development Fund to make capital gains and receive dividends tax-free.
| ||
|
