Speculative New Options Offer Raises Just $10, Highlights Exploration Risks

Background to the Offer

New Age Exploration Limited (ASX, NAE) has issued a new options prospectus dated 5 February 2026, offering 1,000 new options at a nominal price of $0.01 each. While the offer itself will raise only up to $10, its primary purpose is to enable secondary trading of a substantial tranche of new options issued under a placement completed in late 2025.

In October 2025, New Age Exploration announced a placement of 1.5 billion new shares to sophisticated and institutional investors, raising $3.75 million at $0.0025 per share. Alongside these shares, the company issued one free attaching new option for every three shares subscribed, exercisable at $0.012 each with an expiry date of 21 December 2026. The placement was completed in two tranches, with shareholder approval secured for the second tranche in November 2025.

Purpose and Terms of the New Options Offer

The new options were originally issued without a prospectus under exemptions in the Corporations Act, which imposed trading restrictions on their sale for 12 months. This new prospectus is designed to comply with section 708A(11) of the Corporations Act, removing those restrictions and allowing holders to trade the options on the ASX once official quotation is granted.

The offer is by invitation only to selected parties and will not significantly impact the company's capital structure or control. The new options offered under this prospectus are exercisable at $0.012 each and expire on 21 December 2026. Shares issued upon exercise will rank equally with existing shares and be eligible for quotation on the ASX.

Financial and Market Impact

The offer will raise nominal funds, with proceeds expected to cover offer expenses estimated at approximately $26,900. The company’s existing cash reserves will cover any shortfall. The share price of New Age Exploration has traded between $0.002 and $0.004 in the three months prior to the prospectus lodgement, reflecting the speculative nature of the company’s exploration activities.

New Age Exploration’s projects include gold exploration in Australia’s Pilbara region and New Zealand’s Lammerlaw, Manorburn, and Marlborough areas. The company’s operations remain in the exploration phase, with no current production or income, and dividends are not anticipated in the near term.

Risks and Speculative Nature

The prospectus provides a comprehensive overview of risks, highlighting the speculative nature of investing in exploration companies. Key risks include exploration and development uncertainties, operational challenges, environmental and regulatory compliance, currency fluctuations, and the need for future capital. The company also notes broader economic and market risks, including the ongoing impact of COVID-19 and commodity price volatility.

Investors are cautioned to consider these risks carefully and consult professional advisers before participating. The directors and substantial holders have indicated they do not intend to participate in this offer.

Next Steps and Market Implications

New Age Exploration will apply for official quotation of the new options on the ASX within seven days of the prospectus date. If approved, this will provide liquidity for holders of the options issued under the placement, potentially enhancing market activity and investor interest. However, the actual trading volume and market response remain to be seen.

For now, the offer represents a technical step to clear trading restrictions rather than a capital raising event, underscoring the company’s ongoing focus on advancing its exploration projects while managing shareholder interests.