Alvo Minerals’ $0.049 Share Offer Aims to Unlock Trading Restrictions

Background and Purpose of the Offer

Alvo Minerals Limited (ASX, ALV) has issued a transaction-specific prospectus dated 1 December 2025, offering a modest 1,000 shares at an issue price of $0.049 each. This offer is by invitation only and is designed primarily to remove trading restrictions on shares issued prior to the closing date, enabling shareholders to trade those shares freely within 12 months of issue without the need for a further prospectus.

The offer follows a recent placement announced on 27 November 2025, where Alvo secured firm commitments to raise approximately $2.2 million through the issue of over 44 million shares. This capital injection is aimed at accelerating exploration activities at the company’s Palma copper-zinc project in Brazil.

Financial Impact and Capital Structure

The current offer is nominal in size, expected to raise only about $49 before costs, with the expenses of approximately $18,206 to be met from existing cash reserves. As such, the offer will have a negligible impact on Alvo’s financial position. Upon completion, the company’s issued capital is projected to increase to approximately 240 million shares, factoring in the placement and director subscriptions pending shareholder approval.

Importantly, the company does not anticipate any change in control as a result of this offer, with no shareholder expected to hold more than 20% voting power post-issue. Substantial shareholders currently include Ore Mining Private Equity, Cremorne Capital Limited, and Spezia 55 Pty Ltd, holding between 8.6% and 12% stakes.

Risks Highlighted in the Prospectus

Alvo’s prospectus provides a comprehensive overview of risks, underscoring the speculative nature of investing in mineral exploration ventures. Key risks include the need for future funding to support ongoing exploration and potential development, with no guarantee that additional capital will be available on favourable terms. The company’s 2024 financial report flagged material uncertainty regarding its ability to continue as a going concern without successful capital raises.

Operating in Brazil introduces additional layers of risk, including political, economic, and regulatory uncertainties. Changes in legislation, currency instability, and challenges in enforcing contracts could adversely affect Alvo’s projects. Environmental compliance, community relations, and operational risks such as equipment failure and adverse weather also pose potential challenges.

Strategic Outlook and Governance

The company’s directors, including Managing Director Robert Smakman and Non-Executive Chairman Graeme Slattery, hold significant share and option interests, aligning management incentives with shareholder outcomes. The prospectus notes that further share issuances, including options to the lead manager, are contingent on shareholder approval at an upcoming general meeting.

Alvo continues to comply with ASX continuous disclosure requirements and provides investors with access to detailed financial reports and announcements. The company’s focus remains on advancing exploration at Palma and managing the inherent risks of mineral exploration in a foreign jurisdiction.