Clara Resources Australia (ASX:C7A) non-renounceable rights issue announcement

Clara Resources Australia Limited (ASX:C7A) has announced a non-renounceable rights issue to eligible shareholders, offering 2 new fully paid ordinary shares for every 3 shares held at an issue price of $0.01 per share. The rights issue aims to raise approximately A$1,667,594 before costs. The funds raised will be utilized to advance project development efforts at the Company's 100% owned Ashford Coking Coal project in NSW, repay outstanding debts, and for general working capital including costs of the offer.

Executive commentary on the rights issue

The purpose of the rights issue is to raise funds to support the development of our Ashford Coking Coal project and to strengthen our financial position by repaying debts. We believe that this initiative will provide the necessary resources to progress our project and enhance shareholder value. We encourage all eligible shareholders to consider participating in this capital raising opportunity.

Summary of Clara Resources Australia (ASX:C7A) rights issue announcement

Clara Resources Australia Limited (ASX:C7A) has announced a non-renounceable rights issue to raise approximately A$1,667,594 before costs. The funds raised will be directed towards advancing project development efforts at the Company's Ashford Coking Coal project, debt repayment, and general working capital. The rights issue will offer 2 new fully paid ordinary shares for every 3 shares held at an issue price of $0.01 per share. Shareholders will also have the option to apply for additional new shares above their entitlement. Upon completion of the rights issue, assuming it is fully subscribed and existing options are not exercised, the issued capital of Clara will comprise approximately 416,898,397 shares and 34,585,418 unlisted options. The new shares will rank equally with Clara's existing shares, and trading in the new shares is expected to commence on Monday, 28 October 2024.