FOCUSED ON EXPLORATION AND DEVELOPMENT PROJECTS

$12 Million Capital Raising and Elimination of $24.5 Million in Debt

Energy and Minerals Australia Limited (EMA or the Company) is pleased to advise of a capital raising and restructure of the Company’s balance sheet.

Highlights

  • $12 million of new capital by way of an equity raising to Forrest Family Investments.
  • $24.5 million of debt converted into equity demonstrating strong support by EMA’s long-term financial supporters.
  • EMA remains focused on completing the feasibility study on its Mulga Rock Project and achieving its target of production by the end of 2016.

The Company is pleased to announce that it has entered into a binding term sheet with Forrest Family Investments Pty Ltd, an Andrew Forrest entity within the Minderoo Group, to raise $12 million by way of an equity capital raising (Placement).

In addition, the Company’s note holders, leading Australian resource investment groups Acom Capital Limited and its clients (Acorn), Macquarie Bank (Macquarie) and the Element Resources Fund, have agreed that the debt owed to them shall be repaid in shares (Notes Conversion), subject to certain conditions as outlined below. As a result $24.5 million of debt will be eliminated and converted into shares.

These two transactions will restructure the Company’s balance sheet and increase its net assets by $36.5 million.

Andrew Forrest noted that “my investment is a strong vote of confidence in the executive management team of Mike Young and Julian Tapp with whom I have had a long and successful working relationship”.

Mike Young, Managing Director of EMA, said, “Julian and I have always worked extremely well with Andrew Forrest. We are confident this investment in the new management team will unlock EMA’s potential and future growth”.

“Raising $12 million in equity and eliminating all of EMA’s $24.5 million debt will increase the Company’s net assets by $36.5 million and provide EMA with a strong balance sheet and a more normalised capital structure. EMA is now setup to move the Mulga Rock Uranium project forward to meet uranium demand which is expected to grow at a phenomenal rate in coming years”.