Unity Metals has opened a non-renounceable share purchase plan targeting $1 million to fund gold and copper-gold exploration in Cambodia and Thailand. Eligible shareholders can buy shares at a 15.2% discount, with attaching options subject to a later shareholder vote.
- $1 million target at $0.15 per share
- 15.2% discount to the relevant five-day VWAP
- One unquoted option for every two shares subscribed
- Funds directed to drilling and geophysics in Cambodia and Thailand
- Raising is non-renounceable, ununderwritten and subject to possible scale-back
Discounted SPP opens for Unity Metals shareholders
Unity Metals Limited (ASX:UM1) has opened a $1 million share purchase plan aimed at keeping its Cambodian drilling campaign moving, offering eligible shareholders shares at $0.15 each. The price represents a 15.2% discount to Unity Metals’ volume-weighted average price over the five trading days before the plan was announced.
The offer is open from 5 October to 19 October 2026 and allows eligible shareholders to apply for between $1,000 and $30,000 of new shares. Participation is limited to shareholders on the register at 24 September with registered addresses in Australia, Cambodia, Hong Kong, Malaysia, New Zealand, Singapore or the United Kingdom.
Exploration spending spans Cambodia and Thailand
Unity Metals plans to combine the SPP proceeds with funds from its recently announced placement. The money is earmarked for extensional and infill drilling at the Camp Prospect and regional target testing at the O’Phlay Gold Project in Cambodia, alongside work at Ngot including Rohav Mountain, Ngot Central, Mesam South and regional targets.
The company also intends to fund rock-chip and soil geochemistry and geophysical surveys at its Loei Copper-Gold Project in Thailand. Working capital and further project development are included in the stated use of funds, so the full $1 million target will not necessarily translate directly into drilling metres.
Attaching options require shareholder approval
For every two new shares subscribed, participants can apply for one unquoted option at no additional cost. The options would be exercisable at $0.225 on or before 31 October 2028, but they will only be issued if shareholders approve the proposal at a general meeting scheduled for 17 November.
That creates a separate approval hurdle for the option component. If approval is not obtained, participants will still receive any new shares allotted under the SPP but will not receive the attaching options. The company does not intend to seek ASX quotation for the options.
Ununderwritten raise leaves final outcome uncertain
The SPP is not underwritten, meaning Unity Metals has no contractual guarantee that the $1 million target will be raised. The Board may accept oversubscriptions, scale back applications at its discretion, or place any shortfall with sophisticated, professional and other exempt investors, subject to any required approvals.
The next hard data point is the SPP result, due on 21 October, followed by the proposed issue and ASX quotation of new shares later that month. Until then, shareholders are being offered a discounted entry price, but not certainty over the amount raised, their final allocation or the options attached to it.
Bottom Line?
The SPP offers a discount and potential option upside, but the investment case still depends on participation levels, the eventual allocation and shareholder approval for the unquoted options.
Questions in the middle?
- Will applications meet the $1 million target, or will Unity Metals need a further shortfall placement?
- How much dilution will the SPP create once the final number of new shares is known?
- Will shareholders approve the attaching options at the 17 November general meeting?