OZZ Resources to reward loyal shareholders with bonus option offer
OZZ Resources (ASX: OZZ) shareholders are set to be rewarded for their support with the company revealing it would be issuing bonus loyalty options, which is expected to raise about $75,000.
Eligible OZZ shareholders will be offered one option at $0.05 each for every three ordinary shares owned.
The options are exercisable at $0.25 each within three years.
If all options under the offer are exercised, OZZ will receive $3.76 million.
OZZ chairman Alan Lockett said the offer recognised the “invaluable support” shareholders had provided the company.
“We are making good progress at our projects and look forward to achieving further milestones.”
CPS Group has agreed to fully underwrite the offer and will receive 2.9 million options under the same offer terms.
It has also been appointed OZZ’s corporate advisor for 12 months and will receive 750,000 fully paid shares as consideration.
For its services in underwriting the current loyalty option offer, CPS will also receive a fee equating to 6% of the offer’s total gross proceeds.
WA focused gold explorer
OZZ made its ASX debut in early July after raising $5 million in a heavily oversubscribed IPO.
The company owns a portfolio of five gold and base metal projects in Western Australia, which are near major gold production centres in the state.
A maiden 5,000m reverse circulation drilling program started in July at the Maguires project, which aimed to gather enough data to release a JORC resource on the Old Prospect target.
Historical drilling at Old Prospect returned 6m at 18.6 grams per tonne gold, 7m at 8.7g/t gold and 6m at 11.6g/t gold.
The maiden program is now complete and totalled 45 holes with assays due this month.
Since listing, OZZ has also finished aeromagnetic surveys over the Rabbit Bore and Peterwangy projects.
The company is evaluating the data from the surveys which will be followed up with mapping, further surveys and sampling.