Aguia Resources Unveils $4M Entitlement Issue with Free Options to Fuel Exploration

Capital Raise Details

Aguia Resources Limited (ASX – AGR), an exploration and development company focused on mineral projects in Brazil and Colombia, has launched a non-renounceable pro-rata entitlement issue to raise up to approximately $4 million before costs. Eligible shareholders in Australia, New Zealand, and Hong Kong are offered one new fully paid ordinary share for every ten shares held at an issue price of 2.7 cents per share. Each new share will be accompanied by one free-attaching option exercisable at 3.5 cents, expiring two years from issue.

Purpose and Use of Funds

The capital raised will be primarily directed towards advancing exploration and pre-development activities at Aguia’s Santa Barbara Gold Project and Tres Estrades Phosphate Project. The company currently holds approximately $1.5 million in cash, and the entitlement issue proceeds would increase total cash reserves to about $5.5 million if fully subscribed. Working capital needs and the costs associated with the entitlement issue itself are also accounted for in the use of funds.

Impact on Shareholders and Capital Structure

The entitlement issue will increase the total shares on issue by approximately 9%, from about 1.49 billion to 1.64 billion shares if fully subscribed. Shareholders who do not participate will face dilution, although the company notes this is not expected to materially affect control. Eligible shareholders may also apply for additional shares from any shortfall, subject to certain restrictions. The new options issued alongside the shares will only dilute shareholders upon exercise, and there is no guarantee they will be exercised.

Risks and Regulatory Considerations

Aguia Resources has provided a comprehensive risk disclosure in the prospectus, highlighting the speculative nature of investing in exploration companies. Key risks include exploration and development uncertainties, regulatory and environmental approvals, commodity price volatility, foreign currency exposure, and country-specific risks related to operating in Brazil and Colombia. The entitlement issue is not underwritten, adding an element of subscription risk. The company also plans to seek ASX quotation for the new options, though this is subject to meeting listing requirements.

Next Steps for Investors

The entitlement issue opens on 13 October 2025 and closes at 5 – 00pm Melbourne time on 23 October 2025, with the company reserving the right to extend or close the offer early. Eligible shareholders can participate via BPAY or electronic funds transfer depending on their jurisdiction. The company encourages shareholders to seek independent financial advice before participating. Results of the entitlement issue and the issue of new shares and options are expected to be announced by 30 October 2025.