Mt Malcolm Mine NL has supplemented its October Rights Issue with a $750,000 Placement Offer, updating its capital structure and funding plans to accelerate exploration and repay director loans.
- Placement Offer of 50 million shares at $0.015 each to raise $750,000
- One free option issued per share under Placement Offer
- Updated timetable and capital structure reflecting combined Rights Issue and Placement
- Funds earmarked for project drilling, loan repayment, working capital, and offer expenses
- Control impact reduces major shareholder’s voting power to 17.85%
Background and Offer Details
Mt Malcolm Mine NL (ASX, M2M) has released a Supplementary Prospectus dated 21 November 2025, providing key updates to its original Rights Issue prospectus from late October. The company announced it successfully raised the full subscription under its Rights Offer and attracted excess demand, prompting a new Placement Offer of up to 50 million shares at $0.015 each to raise an additional $750,000. This Placement Offer includes one free option for every share issued and is available only to invited investors.
The Supplementary Prospectus revises the timetable for the capital raising, details the impact on the company’s capital structure, and updates the use of funds and control implications. The Placement Offer shares and options will be issued on the same terms as those under the Rights Issue.
Capital Structure and Control Impact
Assuming full subscription of both the Rights Issue and Placement Offer, Mt Malcolm’s shares on issue will increase from approximately 311 million to over 516 million, while options outstanding will rise substantially from around 33 million to more than 253 million. The company’s major shareholder, Mr Trevor Dixon, will see his voting power diluted to 17.85% following the Placement and Rights Issue, reflecting the expanded share base.
The underwriter, Mahe Capital Pty Ltd, will receive a 6% fee on the Placement Offer proceeds and be issued options equivalent to five options per dollar raised, increasing the total options issued to the underwriter to over 15 million.
Use of Funds and Operational Outlook
The combined proceeds from the Rights Issue and Placement Offer are intended to fund further drilling and evaluation at key projects including Golden Crown and Sunday Underground, as well as soil sampling at Mt George, Lake Johnston, and Malcolm Projects. A significant portion will also be allocated to repaying director loans, notably a $460,581 entitlement applied toward Mr Dixon’s loan balance, and to cover working capital and offer expenses.
The company cautions that if only the underwritten amount of $1 million is raised, some planned drilling and sampling activities may be deferred or scaled back, potentially delaying operational objectives. The board remains confident that the funds raised will provide sufficient working capital to meet stated goals but acknowledges budgets may be adjusted based on exploration outcomes and market conditions.
Financial Position and Next Steps
The Supplementary Prospectus includes a pro-forma balance sheet showing an improved cash position post-raising, with net assets increasing accordingly. The company confirms all necessary consents and director authorisations are in place for the updated offer documentation.
Investors should note that the Placement Offer is by invitation only and applications must be made using the company-provided forms. The directors retain discretion to extend the closing date of the offer, which may affect the timing of share quotation on the ASX.
Bottom Line?
Mt Malcolm’s expanded capital raise positions it for accelerated exploration, but full subscription remains critical to avoid scaling back key projects.
Questions in the middle?
- Will the Placement Offer achieve full subscription given it is invitation-only?
- How will the dilution impact shareholder value and future control dynamics?
- What are the contingency plans if the underwritten amount is the only amount raised?