Acquisition of 100% of issued capital in Broken Hill Mines Pty Ltd (BHM)
Acquisition of 100% of issued capital in Broken Hill Mines Pty Ltd (BHM)
“On behalf of the Board of Coolabah Metals, it is my pleasure to advise shareholders that the Company has entered into a binding agreement to acquire Broken Hill Mines Pty Ltd, which holds agreements to acquire the Rasp Mine and an option to acquire a 70% profit share joint venture at the Pinnacles Mine in Broken Hill, NSW.
In addition, the proposed transaction brings together a strong team with significant experience in Australian brownfield base metal asset development and operations to drive the assets forward.
This innovative consolidation transaction is the result of extensive due diligence and negotiation, culminating in what is now a significant opportunity to bring Coolabah Metals into production status.
Rasp is an Ag-Pb-Zn mine that has been a consistent cashflow producer for well over a decade, delivering high quality silver-lead and zinc concentrates globally. The Pinnacles Mine, currently on care & maintenance, sits approximately 15km from Broken Hill, and holds enormous potential to be an additional source of high grade silver, lead and zinc to feed into the currently underutilised Rasp infrastructure.
Up until now, these Broken Hill assets have been operating as standalone projects. Merging these two assets for the first time in history will create strong synergies that will allow the material extension of mine life and production rates, creating significant operating cost advantages.
Coolabah Metals and the board of directors are delighted to announce the purchase of an Australian asset of this worth and quality.”
A notice of meeting will be dispatched shortly to seek shareholder approval of the proposed transaction at a general meeting targeted to be held in November 2024
The Company is also completing Independent Geological & Accounting Reports for inclusion in the public offer prospectus (Prospectus) as part of ASX Chapter 1 & 2 re-compliance.
Coolabah Metals Limited (ASX:CBH) (Coolabah or the Company) is pleased to announce that it has entered into a binding agreement to acquire 100% of the issued capital in Broken Hill Mines Pty Ltd (BHM) (the Acquisition), which in turn holds:
(a) a binding agreement to acquire the Rasp Mine and associated assets via the acquisition of 100% of the issued share capital in Broken Hill Operations Pty Ltd (BHOPL) (BHOPL SPA); and
(b) a binding heads of agreement for an option to acquire a Net Smelter Return (NSR) based 70% profit sharing operating arrangement to develop the Pinnacles Mine (Pinnacles Option).
The Acquisition will amount to a significant change to the nature and scale of the Company’s activities and as such, the Company will be required to obtain shareholder approval under ASX Listing Rule 11.1.2 at a general meeting and re-comply with Chapters 1 and 2 of the ASX Listing Rules in accordance with ASX Listing Rule 11.1.3 (Re-compliance). As part of this process, the Company intends to consolidate its securities on a 3 to 1 basis (Consolidation).
Completion of the Acquisition and Re-compliance (together, the Transaction) is conditional on the Company obtaining all necessary regulatory and shareholder approvals to give effect to the Transaction (amongst other things). Other than the ASX and shareholder approvals referred to in this announcement, the Company is not aware of any additional regulatory approvals required to give effect to the Transaction and that are required in order to continue operating the Rasp Mine as at the date of this announcement.
On completion of the Transaction (Completion), the Company will be reinstated as a minerals producer. In line with this new direction, the Company intends to seek shareholder approval to change its name to ‘Broken Hill Mines Limited’.
Subject to shareholder approval, the Company will seek to raise $3,000,000 (before costs) (Minimum Subscription) via a public offer of 15,000,000 fully paid ordinary shares (Shares) at an issue price of $0.20 per Share (Public Offer). The Directors of Coolabah reserve the right to accept oversubscriptions of 5,000,000 Shares to raise an additional $1,000,000 (before costs) (Maximum Subscription). The Public Offer will be undertaken on a post-Consolidation basis.
Existing shareholders of the Company (Shareholders) will be given priority access to 50% of the Public Offer (up to 10,000,000 Shares on Maximum Subscription).
Indicative corporate and capital structures for the Company as shown on Page 3 of this Announcement.
Coolabah Metals Limited is pleased to announce that it has entered into a binding agreement to acquire 100% of the issued capital in Broken Hill Mines Pty Ltd
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