OAR Resources Limited announced a private placement of convertible notes for the gross proceeds of AUD 1.75 million on April 28, 2023. The convertible notes will be issued to both new and existing groups of sophisticated and professional investors, in two tranches. Tranche 1 comprising of AUD 968,000 for 968 convertible notes at AUD 1,000 each will be issued and is expected to be settled by 5 May 2023.

The balance of the funding comprising tranche 2, AUD 782,000 for 782 convertible notes at AUD 1,000 each will be issued and paid upon receiving shareholder approval to be sought at a shareholder meeting proposed to be held on June 14, 2023 EGM. The company is also proposing to issue investors with free attaching options, to be issued subject to shareholder approval at the EGM. The notes have a term of 24 months, with interest payable quarterly at 10% per annum.

Noteholders will receive 125 free attaching options per AUD 1 subscribed. The notes can only be converted after three months from their date of issue and convert at the lower of AUD 0.006 and 15% discount to 15 day VWAP prior to conversion date. The options will have an exercise price AUD 0.007 each expiring 30 June 2026.