NEWFIELD RESOURCES LIMITED (ASX: NWF) Term Sheet – Placement at $0.30 per share to raise circa $2 million For Sophisticated & Professional Investors Only OFFER DETAILS Issuer Newfield Resources Limited (“Newfield”, “NWF” or the “Company”) Stock Exchange Australian Securities Exchange (“ASX”) Type of Transaction Share Placement (“Placement”) Lead Manager DJ Carmichael Pty Limited (“DJC”) Offer Details Issue Price Placement of up to circa 6.7 million fully paid ordinary shares (“Shares”) at $0.30 per Share to raise circa $2 million. Placement Shares will be issued immediately under the Company’s available capacity under ASX Listing Rule 7.1. $1.5 million of the deal has been cornerstoned leaving $0.5 million available for the desk. The Company is looking to improve the spread and liquidity of the stock and as such will look to increase the Placement by an additional circa $0.75 million if a substantial number of new shareholders are introduced. $0.30 per Placement Share PURPOSE Use of Funds from the Capital Raise AMOUNT ($m) Further appraisal work on Newfield’s Sierra Leone diamond project 1.5 Working capital 0.5 Total 2.0 Restrictions Placement participation by Sophisticated and Professional Investors only (s708 of Corporations Act) Discount The Issue Price represents discounts of ~42.3% and ~38.7% to the last trade price and 5 day VWAP respectively COMPANY DESCRIPTION Newfield Resources Limited is a diversified exploration company with an advanced diamond project in Sierra Leone and several gold projects in Western Australia. Overview Allotropes Diamonds Project – Sierra Leone The Company’s Allotropes Diamond Project in Sierra Leone comprises three granted exploration licences covering approximately 540km². The project is located in the southern Bo District of Sierra Leone and covers approximately 34km reach of the diamondiferous Sewa River. In addition to defining the alluvial diamond potential of the project area, Newfield also plans to test the numerous high priority kimberlite targets that have been defined to date. INDICATIVE TIMETABLE (subject to change) CAPITAL STRUCTURE (Post-Capital Raise) Trading Halt Friday 22 August 2014 Shares on Issue 152,416,668 Commitment Bids Due 12 noon AWST Monday 25 August 2014 Market Cap (at issue price) $45.7 million Offer Letters Sent Monday 25 August 2014 Proforma Cash Amount $4.5 million Acceptances Due 5pm AWST Monday 25 August 2014 52-week High/Low $0.52 / $0.22 Placement Funds Due 9am AWST Monday 1 September 2014 Options (unlisted, various) 69,000,000 CONTACTS Institutional Institutional Anthony Tascone Scott Robertson (08) 9263 5297 (08) 9263 5218 [email protected] [email protected] Research Michael Eidne (08) 9263 5213 [email protected] Corporate Finance Stephen Tomsic (08) 9263 5205 [email protected] NEWFIELD RESOURCES LIMITED (ASX: NWF) Term Sheet – Placement at $0.30 per share to raise circa $2 million For Sophisticated & Professional Investors Only INVESTMENT HIGHLIGHTS Advanced diamond project in Sierra Leone • Three granted tenements covering over 540km² in Sierra Leone. • Demonstrated historical production of gem quality diamonds from alluvial gravels. • Recent bulk sampling pits have defined extensive diamondiferous gravels and returned average grade of 47cpht. • High priority kimberlite targets generated from detailed geophysical and geochemical datasets. • The project location is in a stable and safe operating environment that is not directly threatened by the Ebola virus. Sierra Leone is supportive of foreign investment with a Mining Act modelled on Western Australia’s and attractive fiscal terms. Aggressive development plan underway • Newfield has purchased an earth moving fleet and Dense Media Separation (DMS) plant funded by equity (no debt). • DMS plant commissioning and first diamond production milestone scheduled for Q4 2014. • Targeting generation of internal cash flow from alluvial operation. • Undertaking an aggressive resource definition program to define the extent of diamondiferous gravels and establish a maiden alluvial resource. • Testing of high priority kimberlite targets to commence. Strong industry growth profile • Demand for diamonds is outpacing supply due to growing demand from emerging markets, which is predicted to continue. • The potential for a long-term price increase is supported by growing demand, with prices expected to grow 5-7% P/a. • China’s diamond market, now the world’s 2nd largest after the US, has more than tripled to $22.8 billion in 5 years. Highly experienced management and operational team • Joshua Letcher has been responsible for the development of the Allotropes project interests in Sierra Leone. He is highly experienced in project management, plant construction and is currently oversees the Company’s activities in country. • Bryan Alexander is a geologist with more than 20 years’ experience in the exploration and mining industry, having been responsible implementation of substantial exploration and resource definition programs for several companies. • Operational team comprising six expats and 100 locals established in Sierra Leone. Near • • • • • term catalysts - 2014 September Testing of high priority kimberlite targets October Commissioning of the DMS plant Late October First production from the Sierra Leone diamond project November Generation of internal cash flow November Alluvial resource definition ALLOTROPES DIAMOND PROJECT PROJECT GEOLOGICAL BLOCK MODEL KIMBERLITE TARGETS NEWFIELD RESOURCES LIMITED (ASX: NWF) Term Sheet – Placement at $0.30 per share to raise circa $2 million For Sophisticated & Professional Investors Only DIAMOND MARKET OUTLOOK SHARE PRICE CHART DISCLAIMER DJ Carmichael Pty Limited (“DJC”) (ABN 26 003 058 857, AFSL 232571) its Directors, employees, servants or agents, make no recommendation as to whether you should participate in the raising by Newfield Resources Limited (“NWF” or the “Company”) nor do they make any recommendation or warranty to you concerning the shares, or accuracy, reliability or completeness of the information provided or the performance of the Company. This Term Sheet is intended to provide background information only and does not purport to make any recommendation upon which you may reasonably rely without taking further and more specific advice. You should make your own decision whether to participate based on your own enquiries. Potential investors must make their own independent assessment and investigation of the opportunity and should not rely on any statement or the adequacy or accuracy of the information provided by DJC. Shares of small to mid-sized companies typically involve a higher degree of risk and more volatility than securities of larger more established companies. As such, an investment in NWF must be considered as speculative. This information provided does not purport to cover all relevant information about any potential investment in NWF. Accordingly potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of this investment. DJC advise that they and persons associated with them may have an interest in the above securities and that they may earn brokerage, commissions, fees and other benefits and advantages, whether pecuniary or not and whether direct or indirect, in connection with the making of a recommendation or a dealing by a client in these securities, and which may reasonably be expected to be capable of having an influence in the making of any recommendation, and that some or all of our Proper Authority Holders may be remunerated wholly or partly by way of commission. DJC Directors and staff may hold and/or subscribe for securities in NWF. DJC will be entitled to earn a fee for participating in this offer. © 2014 No part of this Term Sheet may be reproduced or distributed in any manner without permission of DJC.
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