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.