AustSino Resources : Proposed Issue of Securities

Proposed issue of securities

Announcement Summary

Entity name

AUSTSINO RESOURCES GROUP LIMITED

Announcement Type

New announcement

Date of this announcement

Tuesday August 18, 2020

The Proposed issue is:

A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +security code	+Security description	+securities to be issued
ANS	ORDINARY FULLY PAID	87,500,000

Proposed +issue date

Tuesday August 18, 2020

Refer to next page for full details of the announcement

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Proposed issue of securities

Part 1 - Entity and announcement details

1.1 Name of +Entity

AUSTSINO RESOURCES GROUP LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2	Registered Number Type	Registration Number
ABN	12009076242
1.3	ASX issuer code
ANS

1. The announcement is New announcement
2. Date of this announcement

Tuesday August 18, 2020

1.6 The Proposed issue is:

A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue?

+Security holder approval

Court approval

Lodgement of court order with +ASIC

ACCC approval

FIRB approval

Another approval/condition external to the entity

No

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)?

Existing class

Will the proposed issue of this +security include an offer of attaching +securities?

No

Details of +securities proposed to be issued

ASX +security code and description

ANS : ORDINARY FULLY PAID

Number of +securities proposed to be issued

87,500,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration?

Yes

In what currency is the cash consideration being paid?

AUD - Australian Dollar

What is the issue price per +security?

AUD 0.01300

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class?

Yes

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Part 7C - Timetable

7C.1 Proposed +issue date

Tuesday August 18, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1?

Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

87,500,000

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)?

No

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? Yes

7D.4a Please enter the number and +class of the +securities subject to +voluntary escrow and the date from which they will cease to be subject to +voluntary escrow

87,500,000 fully paid ordinary shares will be subject to a holding lock and may not be traded or transferred for 12 months or until the Company issues a prospectus or similar disclosure document to facilitate secondary trading.

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? No

7E.2 Is the proposed issue to be underwritten? No

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7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

The Company entered into a mandate with Mr Frank Vallone for the provision of services in connection to the Placement announced on 18 August 2020. A fee of 5% of the total funds raised payable to Mr Vallone (or his nominee) was settled by way of the issue of 8,425,000 ordinary shares and 20,000,000 unlisted options. The options have an exercise price of $0.02 per option, expire on 18 August 2021 and are subject to vesting conditions (see ASX announcement on 18 August 2020 for details of the conditions). Refer to separate notifications for the issues of these securities.

Part 7F - Further Information

7F.01 The purpose(s) for which the entity is issuing the securities

Funds raised will be used to fund the existing financial support arrangements with Sundance Resources Limited (ASX: SDL) and for general working capital purposes.

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

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