AIC Mines : Placement Completed and Entitlement Offer Commenced

AIC Mines Ltd (ASX: A1M) (AIC or the Company) is pleased to announce the successful completion of its placement of fully paid ordinary shares in AIC (New Shares) at the offer price of $0.28 per New Share (Offer Price) to sophisticated and professional investors (Placement).

The Offer Price represents an 8.2% discount to AIC's last closing price (30 June 2020) of $0.305 per share and an 8.6% discount to the 5-day VWAP of $0.3064 per share.

The Placement received strong support from both existing and new investors, with applications received in respect of $2.6 million. The Placement will be completed in two tranches, with Tranche 1 consisting of 6,785,714 New Shares to be issued within the Company's placement capacity under Listing Rule 7.1. Tranche 2 will consist of 2,500,000 New Shares to be issued subject to shareholder approval, which the Company will seek to procure at the Annual General Meeting to be held on 29 July 2020.

Non-renounceable Entitlement Offer

The Company is also undertaking a fully underwritten, non-renounceable entitlement offer to raise up to $2.1 million (Entitlement Offer). The Entitlement Offer will offer Eligible Shareholders (defined below) the opportunity to subscribe for 1 New Share for every 7 existing AIC shares held on the Record Date, being Thursday, 9 July 2020 at the Offer Price (Entitlements). Eligible Shareholders who elect to take up their full Entitlements and who are not a related party of AIC, may also apply for additional New Shares, subject to the terms of the oversubscription facility to be fully set out in the Entitlement Offer materials.

The Entitlement Offer Price of $0.28 per New Share is the same price that was offered to investors who participated in the Placement. Together, the Placement and Entitlement Offer seek to raise $4.7 million (before costs), which will be used to fund an inaugural drilling program at the Lamil Project as well as ongoing exploration, geophysics and drilling programs at the Marymia Project, and assessing new opportunities.

Who is eligible to participate in the Entitlement Offer

The Entitlement Offer is available to all registered shareholders who hold shares on the Record Date with an address on the AIC register in Australia, New Zealand, Hong Kong, Singapore, Indonesia or the United Kingdom, or certain other foreign jurisdictions determined by AIC (as described in the 'Selling Restrictions' section of the Investor Presentation released to ASX at the same time as this announcement) (Eligible Shareholders). If you are not an Eligible Shareholder or you choose to let your Entitlement lapse, you cannot participate in the Entitlement Offer and your percentage shareholding in AIC will be diluted as a result of the Entitlement Offer.

Underwriting

The Entitlement Offer is fully underwritten by Argonaut Capital Limited (Underwriter). It is proposed that the Entitlement Offer will be sub-underwritten by major shareholder and Chairman, Josef El-Raghy (through his related entity, El-Raghy Kriewaldt Pty Ltd), and Managing Director, Aaron Colleran, on the terms set out in the respective sub-underwriting agreements with the Underwriter. These arrangements will be further detailed in the Offer Booklet.

Lamil Project Joint Venture Information

AIC is earning an interest in the Lamil Gold-Copper Project in the Paterson Province in the northwest of Western Australia. Under the terms of the earn-in and exploration joint venture agreement with Rumble Resources (ASX: RTR) ('Rumble'), AIC can earn a 50% interest by spending $6 million over 4 years. Thereafter AIC can earn a further 15% by spending $4 million over 1 year if Rumble elects not to commence contributing. The key terms of the earn-in and exploration joint venture agreement are described in the Company's ASX announcement dated 22 July 2019.

Exploration Information Extracted from ASX Announcements

This announcement contains information extracted from ASX market announcements reported in accordance with the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ('2012 JORC Code').

Nature of this release

This release is for information purposes only and is not financial product or investment advice or a recommendation to acquire AIC shares (nor does it or will it form any part of any contract to acquire AIC shares). The information in this release is in summary form and does not contain all the information necessary to fully evaluate the Entitlement Offer or any potential investment in AIC. It should be read in conjunction with AIC's other periodic and continuous disclosure announcements lodged with ASX. This release has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives and financial situation and seek legal, financial and taxation advice.

This release may not be released or distributed in the United States. This release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or in any other jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer. None of the Entitlements or the New Shares have been, or will be, registered under the U.S. Securities Act of 1933 (Securities Act) or the securities laws of any state or other jurisdiction of the United States and may not be offered or sold in the United States, except in transactions exempt from, or not subject to, the registration requirements of the Securities Act and applicable US state securities laws. All dollar values are in Australian dollars (A$) unless otherwise stated. All times and dates refer to Australian Eastern Standard time (AEST).

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