Taruga Gold Ltd. Completion of In Specie Distribution and Change to Rights Issue Entitlement Ratio
Eligible shareholders should expect to receive holding statements in the coming days containing details of their Kodal Shares.
Following the distribution, Taruga holds 2,129,886 Kodal Shares which will be sold, as soon as practicable, on behalf of ineligible shareholders as set out in section 6.11 of the Company's Notice of Meeting lodged with ASX on 8 April 2016.
In addition, the Company is pleased to inform shareholders that the entitlement ratio under the upcoming Rights Issue prospectus will change to 2 New Shares for every 3 existing shares held at the record date, from the previously announced ratio of 1 New Share for every 3 existing shares held.
The effect of the changed entitlement ratio means that the Company will issue up to 16,713,565 New Shares to raise approximately $500,000 before costs. The previously announced issue price of $0.03 per New Share remains unchanged.
As announced on 16 May 2016, the timetable for the rights issue is as follows.
Lodge rights issue prospectus with ASIC and ASX : 7 June 2016
Rights issue shares quoted on an "ex" basis: 10 June 2016
Record Date for Rights Issue: 14 June 2016
Placement shares issued and Rights issue opens: 15 June 2016
Last date to extend closing date: 23 June 2016
Rights Issue closes: 28 June 2016
Securities quoted on a deferred settlement basis: 29 June 2016
Notify ASX of under subscriptions: 1 July 2016
Rights Issue Shares issued: 5 July 2016
Trading commences: 6 July 2015
Additionally, management has agreed to a reduction in the total amount of outstanding director's fees to be converted into shares in the Company. The revised figure is a total of 4,166,666 shares from the previously announced 5,836,014. The Company has applied for a waiver from ASX Listing Rule 14.7 so those shares may be issued after the record date for the rights issue.
Accompanying this announcement is a revised Appendix 3b (refer to link below).
To view Appendix 3b, please visit:
About Taruga Gold Ltd:
Taruga Gold Ltd. (ASX:TAR) is a West African focused gold explorer that has compiled, and is currently compiling, a diverse portfolio of exploration projects within the Birimian geology of West Africa. This region is at present one of the world's great gold districts and has had a significant rate of discovery and development on new gold mines over past decades.
Dan Smith, Director & Company Secretary
Taruga Gold Ltd.