Marquee Resources Rights Issue Priced at $0.005 to Raise $1.02 Million

Capital Raise Details and Offer Structure

Marquee Resources Limited (ASX:MQR) has kicked off a pro-rata non-renounceable rights issue to raise up to approximately $1.02 million before costs. Shareholders registered as of 13 July 2026 are entitled to subscribe for one new share for every five shares they hold, priced at $0.005 each. In addition, investors will receive one free attaching option for every two new shares subscribed, exercisable at $0.02 and expiring in April 2028. The offer closes on 27 July 2026, with no underwriting in place.

Based on the current capital structure, the rights issue could add about 204.4 million new shares and 102.2 million new options to the register, increasing the total shares on issue from roughly 1.02 billion to 1.23 billion and options from 233 million to 335 million. The rights issue follows a recent placement, where Marquee raised $1.02 million through a similar pricing and option structure.

Use of Funds and Strategic Focus

The funds raised will be pooled with proceeds from the placement to support several key initiatives. Over half of the capital, about $1.62 million, is earmarked for advancing Marquee’s existing projects, including exploration drilling, metallurgical test work, and environmental studies. A significant portion, $1.08 million, is allocated to the newly acquired Tungsten Mountain Project in Nevada, USA, covering acquisition costs, exploration programs, diamond drilling, and engagement of US-based geological consultants.

Working capital needs, including administrative expenses and director remuneration, will be covered by approximately 11% of the funds. The company’s recent announcement of the Tungsten Mountain acquisition has positioned it to expand its footprint beyond Australian assets, potentially diversifying its resource portfolio.

Dilution and Shareholder Impact

Shareholders who do not participate in the rights issue face dilution of approximately 16.67% of their shareholding, with potential aggregate dilution rising to around 23.08% if all new options are exercised. The offer is non-renounceable, meaning entitlements cannot be traded or sold, which may limit flexibility for some investors.

Substantial holders, including Syracuse Capital Pty Ltd with a 12.47% stake, will see no change in their relative holdings if they fully participate. Directors Charles Thomas and Anna MacKintosh have confirmed their intention to take up their full entitlements, signalling confidence in the capital raise and company prospects.

Ongoing Risks and Litigation

Marquee’s prospectus candidly outlines a range of risks typical for a junior exploration and development company. These include exploration and operational risks, commodity price volatility, foreign exchange exposure, and regulatory uncertainties. Notably, the company is embroiled in ongoing litigation with Belmont Resources Inc regarding the Kibby Basin Lithium Project in Canada, with the matter progressing through the Supreme Court of British Columbia. The final outcome remains uncertain and could materially impact Marquee’s asset base.

The company also acknowledges environmental, legal, and market risks, as well as the speculative nature of its securities. Investors are urged to seek professional advice before participating.

Market Context and Next Steps

Marquee’s shares have traded between $0.005 and $0.09 over the past three months, closing at the issue price of $0.005 on 6 July 2026. The rights issue pricing at the recent low end of this range reflects current market conditions and the company’s capital needs. The raise aligns with Marquee’s strategic push into critical minerals, including antimony at Mt Clement and rare earth elements at Redlings, where recent drilling and partnerships have shown promise.

Investors will be watching how the rights issue subscription unfolds by the 27 July deadline and whether the company can execute its exploration and development plans effectively amid the outlined risks. The allocation of funds to the Tungsten Mountain Project marks a notable geographic expansion that could reshape Marquee’s growth trajectory if exploration results meet expectations.