Lincoln Minerals to Issue 150 Million New Shares, Raising $750,000 More
Lincoln Minerals Limited has announced a supplementary prospectus to raise an additional $750,000 through a Follow-on Placement, responding to strong investor demand beyond its initial entitlement offer.
- Additional 150 million shares and 75 million options to be issued
- Follow-on Placement raises $750,000 without shareholder approval
- Total capital raise now up to $2.25 million before costs
- Funds earmarked primarily for exploration and working capital
- Significant increase in shares and options impacting capital structure
Background to the Follow-on Placement
Lincoln Minerals Limited (ASX – LML) has moved swiftly to capitalise on strong investor interest by announcing a supplementary prospectus dated 3 September 2025. This document supplements the original entitlement offer prospectus from August 2025, allowing the company to raise an additional $750,000 through a Follow-on Placement. The move comes after excess demand was observed under the Shortfall Offer, prompting the issue of 150 million new shares and 75 million new options on the same terms as the original offer.
Capital Raising Details and Regulatory Context
The Follow-on Placement is conducted under the company’s existing capacity pursuant to ASX Listing Rules 7.1 and 7.1A, meaning it does not require shareholder approval. The supplementary prospectus clarifies that these additional securities will be issued without trading restrictions, enhancing liquidity for new investors. The total funds raised from the original Offer and this Additional Offer now stand at approximately $2.25 million before costs, with the new shares priced at $0.005 each and options attaching at a ratio of one option for every two shares subscribed.
Use of Funds and Strategic Focus
Lincoln Minerals plans to deploy the capital primarily across its diversified exploration portfolio. Key projects include the Minbrie Copper and Base Metals Project, Jungle Dam and Eridani Uranium Projects, Kookaburra Graphite Project, and Green Iron Magnetite Project. The funds will support drilling programs, metallurgical studies, environmental approvals, and ongoing exploration activities. Additionally, a portion of the proceeds will bolster working capital to cover administrative costs, director fees, and ASX listing expenses.
Impact on Capital Structure and Shareholder Interests
The supplementary prospectus updates the capital structure to reflect the increased number of shares and options on issue. Post-offer, the total shares will rise from approximately 2.1 billion to 2.56 billion, while options outstanding will nearly double to nearly 497 million. This dilution effect means shareholders who do not participate in the offers could see their holdings diluted by up to 17.6%. The document also details the voting power of substantial holders post-raise, highlighting key stakeholders such as HSBC Custody Nominees and Aimeez Pty Ltd.
Market and Investor Implications
The company’s directors express confidence that the capital raise will provide sufficient working capital to meet stated objectives without material adverse effects on investors. The underwriting and lead management of the Follow-on Placement by Mahe Capital, which will receive additional options as part of their remuneration, underscores institutional support for the raise. However, investors should remain mindful of the potential for changes in fund allocation due to market or project risks, as noted in the prospectus.
Bottom Line?
Lincoln Minerals’ expanded capital raise reflects robust investor appetite, setting the stage for intensified exploration activity and potential value creation.
Questions in the middle?
- How will the increased dilution impact shareholder value in the near term?
- What progress can investors expect on the Minbrie Copper and Base Metals Project following this funding?
- Could further capital raises be necessary if exploration results require accelerated development?
