50 million shares proposed at $0.40 in Maronan placement

Shareholders asked to approve $20 million placement

Maronan Metals Limited (ASX:MMA) has inserted a new hurdle into next month’s annual meeting: shareholders must approve the issue of up to 50 million shares at $0.40 each, raising approximately $20 million before costs. The placement is already backed by firm commitments, but cannot proceed unless Resolution 15 passes at the 4 November AGM.

The company’s new resolution follows its $20 million placement commitment, which was announced as funding for expanded drilling and work intended to advance the Maronan Project towards feasibility studies.

Drilling and feasibility work take most of the funds

Maronan says $7.2 million would go towards drilling designed to potentially extend the project’s Mineral Resource, including deeper copper targets, targets north of the existing resource and expanded infill drilling. The stated objectives are to optimise the Indicated category and upgrade some resources to Measured status in support of the planned Definitive Feasibility Study.

A further $4 million is earmarked for site investigations and engineering across the process plant, tailings storage, geotechnical work and borefield establishment. Metallurgical testing would receive $1 million, while $5 million is allocated to the Mining Lease application, associated approvals, landholder arrangements and early site works. The remaining $2.8 million covers working capital and placement costs. Maronan expects the program to run for 12 to 15 months, although it says the final allocation may change with exploration results and company priorities.

Two tranches manage Kinterra’s proposed stake increase

The placement would be issued in two stages. Tranche 1 comprises 36,341,599 shares, including 7,264,685 shares to Isa Resources as nominee for Kinterra Fund II, and is expected within five business days of the meeting. Tranche 2 comprises 13,658,401 shares to Isa Resources as Kinterra’s nominee and is expected on or around 1 December 2026.

Maronan says the sequencing is intended to allow Kinterra Fund II to rely on item 9 of section 611 of the Corporations Act when increasing its voting power. Kinterra currently holds approximately 19.99%; the company estimates that position would remain approximately 19.99% after Tranche 1 and rise to approximately 22.99% after Tranche 2, assuming no other shares are issued. None of the placement participants is described as a related party.

AGM approval is the immediate financing test

Because the proposed issue exceeds Maronan’s standard 15% capacity under ASX Listing Rule 7.1, shareholder approval is required. If Resolution 15 fails, the company says it will not be able to complete the placement. The voting exclusion statement applies to placement participants and others expected to receive a material benefit, subject to the stated proxy, fiduciary and directed-voting exceptions.

The AGM remains scheduled for 11:00am on 4 November 2026 in Sydney. Replacement proxy instructions must be received by 11:00am on 2 November, with the addendum changing the voting materials while leaving Resolutions 1 to 14 otherwise unchanged.