Ausmon Resources Unveils Discounted Share Purchase Plan with Tax Incentives
Ausmon Resources Limited has launched a Share Purchase Plan offering shareholders shares at an 8.6% discount, with potential tax credits for Australian investors. The move aims to strengthen the company’s balance sheet and fund exploration activities.
- Share Purchase Plan priced at $0.0018 per share, an 8.6% discount to recent VWAP
- Eligible shareholders can invest up to $30,000 without brokerage fees
- Potential distribution of Junior Minerals Exploration Incentive (JMEI) credits for Australian residents
- Proceeds earmarked for debt reduction, exploration, and working capital
- SPP is not underwritten; shortfall shares may be placed with sophisticated investors
Ausmon Resources Launches Share Purchase Plan
Ausmon Resources Limited (ASX: AOA) has announced a Share Purchase Plan (SPP) offering its registered shareholders the opportunity to acquire fully paid ordinary shares at a discounted price of $0.0018 per share. This price represents an approximate 8.6% discount to the volume weighted average price (VWAP) over the last five trading days and a 10% discount to the last closing price before the announcement on 18 February 2025.
The SPP allows eligible shareholders to invest up to $30,000 without incurring brokerage or transaction costs, providing a cost-effective way to increase their stake in the company. The offer is open to shareholders registered as of 11:00pm Sydney time on 17 February 2025.
Incentives and Tax Benefits for Australian Investors
Notably, Australian resident participants in the SPP may receive a pro-rata distribution of the Junior Minerals Exploration Incentive (JMEI) credits. These credits, allocated to Ausmon Resources based on eligible exploration expenditure and equity capital raised, can be claimed as refundable tax offsets or franking credits in shareholders’ 2025 income tax returns. The company was allocated $600,000 in JMEI credits for the 2025 financial year, although the exact distribution per share remains uncertain due to variables in exploration spend and capital raised.
Past distributions of JMEI credits in 2023 and 2024 were $0.1859 and $0.2598 per dollar subscribed respectively, but Ausmon cautions that these figures should not be taken as indicative of future credits.
Use of Proceeds and Capital Strategy
Funds raised through the SPP will be directed towards reducing borrowings and accounts payable, supporting ongoing exploration activities, and bolstering general working capital. This strategic allocation underscores Ausmon’s focus on strengthening its financial position while advancing its mineral exploration objectives.
The SPP is not underwritten, meaning there is no guaranteed subscription level. Should there be a shortfall, the company intends to place remaining shares with sophisticated or professional investors who do not require a disclosure document, including existing shareholders.
Shareholder Considerations and Next Steps
Ausmon Resources encourages shareholders to carefully review the full Offer Document and Application Form and to seek independent legal, financial, or tax advice if uncertain about the offer’s implications. Executive Director Eric Sam Yue and Managing Director John Wang have both emphasised the company’s commitment to shareholder engagement and prudent capital management through this initiative.
As the SPP unfolds, market participants will be watching closely to gauge shareholder uptake and the subsequent impact on Ausmon’s share price and financial health.
Bottom Line?
Ausmon’s discounted SPP and potential tax credits could catalyse shareholder support and fund critical exploration, but uptake and scale-back risks remain key watchpoints.
Questions in the middle?
- What level of shareholder participation and scale-back might Ausmon face in this SPP?
- How will the uncertain JMEI credit distribution influence investor appetite?
- What impact will the capital raise have on Ausmon’s exploration progress and share price momentum?