Investment objective

The Company expects that an investment in the Options will be suitable to investors who wish to gain exposure to equities in a small to mid-capped mineral exploration company with international operations listed on the ASX.

Investment timeframe

The target market of investors will take a short to medium term outlook on their investment.

The Company will not apply for quotation of the Options. The Options are not transferable. The Options are therefore not suitable for investors looking to trade the Options prior to exercise.

Option holders will also have an ability to exercise the Options and trade the underlying Shares issued on exercise, however, investors should be aware that such a dealing is only likely to be commercially viable in the event the trading price of the Shares exceeds the exercise price of the Options both at the date of exercise and sale. 

Investors with a medium-term outlook will benefit from an ability to exercise Options within the 3 year term of the Options and increase their shareholding and exposure to the potential upside in the Company’s Shares into the future.

Given the need to pay the exercise price in order to acquire the underlying Shares, investors in the target market are those who are in a financial position that is sufficient for them to invest their funds over a 3 year time horizon, during which time their ability to liquidate their Options may be limited on exercise of the Options by the trading price of the underlying Shares.

Investment metrics

While the Company does not have an established eligibility framework for investors based on metrics such as age, expected return or volatility, it is expected that the target market of investors will be able to withstand potential fluctuations in the value of their investment. The Options offer no guaranteed income or capital protection.

Risk

The Company considers that, while the issue price of the Options is nil, an investment in the Company offered in connection with the Prospectus (for example, through the exercise of the Options) should be considered highly speculative, such that an investment in the Company is not appropriate for an investor who would not be able to bear a loss of some or all of the investment. Investors should also have a sufficient level of financial literacy and resources (either alone or in conjunction with an appropriate adviser) to understand and appreciate the risks of investing in Options as an asset class generally and the more specific risks of investing in an ASX listed mineral exploration company with international operations.

Distribution conditions

The Options are being offered to Eligible Shareholders who participate in the Offers, and, to the extent that there is any Shortfall under the Offers, the Underwriters, Related Party Sub-Underwriters and other third-party sub-underwriters.

The Prospectus includes jurisdictional conditions on eligibility. The Company will also include on its web landing page for the Offers a copy of this TMD and send a copy of the TMD to each Eligible Shareholder (which may be a digital copy sent to the email address of the relevant Eligible Shareholder).

The Company considers that these distribution conditions will ensure that persons who invest in Options fall within the target market in circumstances where personal advice is not being provided to those persons by the Company.

Review triggers

The Options are being offered for a limited offer period set out in the Prospectus, after the conclusion of which the Options will no longer be available for investment by way of issue. It follows that the TMD will only apply in the period up to the issue of the Options (Offer Period).

To allow the Company to determine whether circumstances exist that indicate this TMD is no longer appropriate to the Options and should be reviewed, the following review triggers apply for the Offer Period:

a)     the Company issues a supplementary prospectus during the Offer Period which allows subscribers under the Offers to withdraw their applications pursuant to section 724(2)(a) of the Corporations Act;

b)     any event or circumstance that would materially change a factor taken into account in making this TMD;

c)     the existence of a significant dealing of the Options that is not consistent with this TMD;

d)     ASIC raises concerns with the Company regarding the adequacy of the design or distribution of the Options or this TMD; and

e)     material changes to the regulatory environment that applies to an investment in the Options.

Review period

If a review trigger occurs during the Offer Period, the Company will undertake a review of the TMD in light of the review trigger.

The Company will otherwise complete a review of the TMD immediately prior to the issue of Options under the Prospectus.

Information reporting

The reporting requirements of all distributors is set out in the table below: