Shree Minerals Limited (ASX:SHH) shareholders will receive a priority allocation of up to a total of 5 million fully paid ordinary shares in the capital of MetalsGrove Mining Ltd (MGM) at an issue price of $0.20 per share for a maximum of $1 million.
The allocation comes as MetalsGrove lodges its prospectus today in association with its initial public offer (IPO) of up to 35 million shares at $0.20 per MGM share to raise a minimum of $5 million and a maximum of $7 million.
Should MGM receive applications from eligible Shree Minerals shareholders for more than 5 million shares equivalent to $1 million, the company will implement a customary scale-back of applications under the priority offer, which will have reference to the pro rata shareholdings of eligible shareholders and subject to a minimum allocation of $2,000 per applicant.
Any applications more than 5 million shares will be treated as additional applications under the IPO.
Shree shareholders will be sent a link to the prospectus with instructions on to how to apply for MGA shares.
The closing date for the priority offer is 5:00pm (WST) on June 6, 2022.
In January this year, SHH agreed to divest its stake in the Arunta Joint Venture with Territory Lithium, which holds the Box Hole, Edwards Creek and Bruce gold projects, all in the Northern Territory in Australia, to MGM, so that it could focus on its existing high-priority exploration targets in New South Wales and Western Australia.