Castle Minerals Limited (ASX: CDT) has announced a non-renounceable pro-rata entitlement offer to eligible shareholders, granting one new option for every three shares held. Priced at $0.005 per new option, the Loyalty Options Offer seeks to raise up to $193,349.28 before costs. The offer is not underwritten and is available to shareholders in Australia, New Zealand, Isle of Man, and Singapore as of the record date, April 29, 2025.
The new options have an exercise price of $0.12 each and will expire on May 31, 2028. If all options are issued and exercised, Castle Minerals could receive approximately $4,640,382.72, intended for working capital. The offer opens on May 2, 2025, and closes on May 21, 2025.
The purpose of the Loyalty Options Offer is to acknowledge shareholder support. The company does not expect the offer to impact the company’s control. The offer will increase the number of options on issue by a maximum of 38,669,856. Existing option holders include directors Stephen Stone and Matthew Horgan, who intend to take up their full entitlements. If shareholders don’t participate, their holdings may be diluted if new options are exercised.
Key risks associated with the investment include the speculative nature of mineral exploration, regulatory changes, and potential difficulties in raising future capital. The unlisted options will be transferable off-market, but there is no guarantee that shares will trade above the exercise price. Shareholders are advised to consult with professional advisors before making investment decisions. Funds raised from the options and their exercise will contribute to Castle Mineral’s working capital, enhancing its capacity to progress projects and meet financial obligations.
