DRAIG RESOURCES LTD Suite 22.01, 25 Bligh Street, Sydney NSW 2000
GPO Box 4309, Sydney NSW 2001
www.draigresources.com ABN 99 110 439 686
Dear Shareholder,
ASX Code: DRG
On behalf of the Board of Directors, I am pleased to confirm a non-renounceable rights issue as part of the Company's capital raising initiatives that will raise up to approximately $810,000. In difficult and volatile market conditions the Board believes that it is appropriate to undertake this at this time.
The Company is undertaking this capital raising to enable it to accelerate its review and analysis of other opportunities that could provide appropriate risk adjusted returns to Shareholders, and to strengthen its financial position.
While the Company continues to maintain its 75% interest in the Mongolian Coal Joint Venture project, it is reviewing all options to extract the best possible value for this asset.
The renounceable rights issue attached is to raise approximately $610,000 through the issue of 30,523,954 shares of $0.02 each. The issue is partly underwritten to $300,000 by Patersons Securities Limited.
On behalf of the Board, I commend this rights issue to you, and draw your attention to the risk factors outlined in Section 6. I thank you for your support during 2015 and look forward to being able to deliver shareholder value from our initiatives in 2016.
Yours faithfully,
Peter Doherty Chairman
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