Central Iron arranges $2.89-million rights offering

Executive Summary

• Central Iron Ore Ltd. announced a rights offering to existing shareholders, allowing them to purchase units at 7.2 cents per unit.
• The offering aims to raise gross proceeds of up to $2,891,213, with net proceeds designated for the South Darlot joint venture, drilling at the British King mine, loan repayment, and working capital.
• Each unit consists of one ordinary share and one share purchase warrant exercisable at 12 cents per share until October 15, 2030.

Key Details

• Subscription Price: 7.2 cents per unit.
• Unit Composition: Each unit comprises one ordinary share and one share purchase warrant.
• Warrant Terms: Each warrant allows the holder to acquire one additional share at an exercise price of 12 cents per share.
• Warrant Expiry: October 15, 2030.
• Warrant Listing: Warrants are not listed for trading on any securities exchange but are transferable.
• Rights Entitlement: One right for each ordinary share held at the close of business on the record date of December 23, 2025.
• Rights Expiry: January 21, 2026, at 5 p.m. Toronto time.
• Gross Proceeds: Up to $2,891,213.
• Use of Proceeds:
  • Contribution to the South Darlot joint venture.
  • Drilling at the British King mine area.
  • Partial repayment of a loan to Gullewa Ltd.
  • Corporate and general working capital purposes.
• Share Count Impact:
  • Pre-offering shares outstanding: 40,155,734.
  • Post-offering shares outstanding (assuming full exercise): 80,311,468.
• Regulatory Approval: Subject to final approval, including from the TSX Venture Exchange.
• Eligibility: Conducted in all Canadian provinces/territories, Australia, New Zealand, and other lawful jurisdictions. Ineligible shareholders outside these regions must contact the company to determine eligibility.
• Insider Participation: Directors and executive officers are permitted but not required to participate on the same terms.

Notable Quotes

• No direct quotes from management were included in the provided text.