Speciality Metals International Limited Annual Report 2020

14 Speciality Metals International Limited Annual Report 2020 Strategy Review Throughout the 2020 financial year, the Board has continued to guide the Company’s corporate strategy and long-term vision, seeking to leverage the Company’s core competencies and its outstanding Mt Carbine assets, to position the Company to be a value-oriented resources company, sustainably producing and managing new economy minerals and metals. The potential of the Mt Carbine assets is being realised through resource-efficiency and investment in our people and operations. The ongoing resource exploration (redefinition) targeting high-grade envelopes for underground mining (refer to figure 1 Mt Carbine Development Projects Timeline) is consistent with our approach to drive value in our operations and at the same time reduce our environmental footprint. The Company is continuing to evaluate corporate and exploration opportunities within the new economy and critical minerals sector to create shareholder value. Capital Raisings Non-Renounceable Entitlements Offer In July 2019, the Company raised $2,900,000 by way of an underwritten pro-rata non-renounceable shareholder entitlement offer ( Offer ). Pursuant to the Offer, all eligible shareholders were entitled to 1 new share for every 5 existing shares held in the Company at 0.018 cents per share and the Offer was fully underwritten by Rymill Global Ventures Ltd. The Offer resulted in a short-fall as set out below (also refer to ASX announcement Rights Issue Closure and Notification of Shortfall released on 26 July 2019). Event No of Shares Applicable Funds Shares on issue before the Offer 798,107,881 Total shares applied for under the Offer 112,733,514 $2,029,203 Shortfall shares remaining after close of the Offer 46,888,236 $843,988 On 2 August 2019, all unsubscribed shares were taken up and issued to Rymill Global Ventures Ltd in accordance with the underwriting agreement. On the same day, the 25,000,000 Performance Rights, granted to Directors at a price of $0.0132 at the General Meeting on 22 June 2018, were also issued to Directors having satisfied the vesting condition relating to the purchase of Mt Carbine Quarries Pty Ltd. Placement On 6 March 2020, the Company raised $4,500,000 via the placement of 125,000,000 fully paid ordinary shares at a price of 3.6 cents. The placement was undertaken pursuant to the Company’s placement capacity under Listing Rule 7.1 (15% Rule) (refer to ASX announcement Capital Raising Successfully Completed released on 6 March 2020). Operating and Financial Review continued