Phone: +61 8 9277 2600
Web Site: www.ferrowest.com.au
Email:
ASX Code: FWL
5 November, 2008
ALLOTMENT OF SHARES
APPENDIX 3B AND SECTION 708A NOTICE
Ferrowest Limited is pleased to announce that on the 28th of October 2008 the
Company reached agreement for the placement of 2,000,000 ordinary fully paid
shares at $0.10 per share to raise an amount of $200,000.
These funds will be used
as further working capital pending the funding expected to flow from the
anticipated investment and product off‐take agreements previously announced.
At the time this agreement was made, just over a week ago, the share price of the
Company was $0.06, making the placement at a 66% premium to the market price
at that time.
The original paperwork required by the Company to complete the
transaction was then delayed in the mail and the Company has only received the
necessary documentation today.
The Company is pleased that the sophisticated
investor’s faith in the Company has been rewarded by the increase in the share
price since the agreement was reached.
An Appendix 3B is attached detailing the placement of the shares.
Ferrowest Limited gives this notice pursuant to Section 708A (5) of the Corporations
Act 2001 (“the Act”).
The shares were issued without disclosure to investors under Part 6D.2, in reliance
of Section 708A (5) of the Act.
Ferrowest Limited, as at the date of this notice, has complied with:
(a) the provision of Chapter 2M of the Act as they apply to the Company; and
(b) Section 674 of the Act.
As at the date of this notice, there is no “excluded information” (as defined in
Section 708A (7) and (8) of the Act), required to be disclosed by the Company.
Yours sincerely,
Brett Manning
Managing Director
Media inquiries should be directed to: Brett Manning – Managing Director +61 8 9277 2600
The Yalgoo Iron Project - Outline
Ferrowest Limited is developing the Yalgoo Iron Project aimed at producing seaborne traded merchant
pig iron (96%Fe) from the Yogi magnetite deposit near Yalgoo in the mid west region of Western
Australia.
Proposed initial production is 1,000,000 tonnes per annum.
The plan to process the iron ore
to pig iron is premised on the ITmk3® technology and excellent existing infrastructure servicing the
Project area.
The resulting value added merchant pig iron product will be a relatively high margin, high
quality, low volume product for export to quality electric arc furnace steel making plants worldwide.
The Western Haematite Prospect – Outline
Ferrowest Limited has identified a potential zone of direct shipping ore (“DSO”) grade haematite at its
Yogi iron ore deposit 14 km east of Yalgoo in the mid west of Western Australia.
The prospect is to the
west of the main magnetite ore body that forms the basis of the Yalgoo Iron Project.
With a surface
expression of 2km in length and with varying widths up to 50m wide it has significant potential as a DSO
project.
Surface rock chip sampling along the Western Haematite Prospect produced an average grade
of 55%Fe.
Exploration of this deposit is currently underway.
Phone: +61 8 9277 2600
Web Site: www.ferrowest.com.au
Email:
Rule 2.7, 3.10.3, 3.10.4, 3.10.5
Appendix 3B
New issue announcement,
application for quotation of additional securities
and agreement
Information or documents not available now must be given to ASX as soon as available.
Information and
documents given to ASX become ASX’s property and may be made public.
Introduced 1/7/96.
Origin: Appendix 5.
Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.
Name of entity
FERROWEST LIMITED
ABN
14 074 009 091
We (the entity) give ASX the following information.
Part 1 - All issues
You must complete the relevant sections (attach sheets if there is not enough space).
1 +Class of +securities issued or to
be issued
Ordinary Shares Fully Paid
2 Number of +securities issued or
to be issued (if known) or
maximum number which may be
issued
2,000,000 ordinary fully paid shares
3 Principal terms of the +securities
(eg, if options, exercise price and
expiry date; if partly paid
+securities, the amount
outstanding and due dates for
payment; if +convertible
securities, the conversion price
and dates for conversion)
Equal with existing fully paid shares
4 Do the +securities rank equally in
all respects from the date of
allotment with an existing +class
of quoted +securities?
If the additional securities do not
rank equally, please state:
• the date from which they do
• the extent to which they
participate for the next
dividend, (in the case of a
trust, distribution) or interest
payment
• the extent to which they do
not rank equally, other than in
relation to the next dividend,
distribution or interest
payment
Yes – Ordinary fully paid shares
5 Issue price or consideration
$0.10
6 Purpose of the issue
(If issued as consideration for the
acquisition of assets, clearly
identify those assets
To fund working capital expenditure.
7 Dates of entering +securities
into uncertificated holdings or
despatch of certificates
5 November 2008
Number +Class
8 Number and +class of all
+securities quoted on ASX
(including the securities in
clause 2 if applicable)
62,912,323
26,900,561
Ordinary Fully Paid
Shares
Options exercisable
at 25 cents each on
or before 1 June 2010
+ See chapter 19 for defined terms.
Appendix 3B Page 2 1/1/2003
Number +Class
9 Number and +class of all
+securities not quoted on ASX
(including the securities in
clause 2 if applicable)
3,325,000
112,000
84,000
84,000
48,000
36,000
36,000
30,000
22,500
22,500
26,000
19,500
19,500
16,000
12,000
12,000
51,000
38,250
38,250
Options with exercise price of
$0.20 on or before 1 January 2011
Employee Options
Exercise
Price
Vesting
Date
Expiry Date
$0.18 Date of
grant
21/08/09
$0.18 21/08/08 21/08/10
$0.18 21/08/09 21/08/11
Employee Options
Exercise
Price
Vesting
Date
Expiry Date
$0.185 Date of
grant
08/11/09
$0.185 08/11/08 08/11/10
$0.185 08/11/09 08/11/11
Employee Options
Exercise
Price
Vesting
Date
Expiry Date
$0.20 Date of
grant
01/08/09
$0.20 23/10/08 01/08/10
$0.20 23/10/09 01/08/11
Employee Options
Exercise
Price
Vesting
Date
Expiry Date
$0.565 19/11/08 19/11/10
$0.565 19/11/09 19/11/11
$0.565 19/11/10 19/11/12
Employee Options
Exercise
Price
Vesting
Date
Expiry Date
$0.205 Date of
grant
23/10/09
$0.205 23/10/08 23/10/10
$0.205 23/10/09 23/10/11
Employee Options
Exercise
Price
Vesting
Date
Expiry Date
$0.21 6/08/09 6/08/11
$0.21 6/08/10 6/08/12
$0.21 6/08/11 6/08/13
10 Dividend policy (in the case of a
trust, distribution policy) on the
increased capital (interests)
Not applicable
Part 2 - Bonus issue or pro rata issue
11 Is security holder approval
required?
12 Is the issue renounceable or non‐
renounceable?
13 Ratio in which the +securities
will be offered
14 +Class of +securities to which the
offer relates
15 +Record date to determine
entitlements
16 Will holdings on different
registers (or subregisters) be
aggregated for calculating
entitlements?
17 Policy for deciding entitlements
in relation to fractions
18 Names of countries in which the
entity has +security holders who
will not be sent new issue
documents
Note: Security holders must be told how their
entitlements are to be dealt with.
Cross reference: rule 7.7.
19 Closing date for receipt of
acceptances or renunciations
20 Names of any underwriters
21 Amount of any underwriting fee
or commission
+ See chapter 19 for defined terms.
Appendix 3B Page 4 1/1/2003
22 Names of any brokers to the
issue
23 Fee or commission payable to
the broker to the issue
24 Amount of any handling fee
payable to brokers who lodge
acceptances or renunciations on
behalf of +security holders
25 If the issue is contingent on
+security holders’ approval, the
date of the meeting
26 Date entitlement and acceptance
form and prospectus or Product
Disclosure Statement will be sent
to persons entitled
27 If the entity has issued options,
and the terms entitle option
holders to participate on
exercise, the date on which
notices will be sent to option
holders
28 Date rights trading will begin (if
applicable)
29 Date rights trading will end (if
applicable)
30 How do +security holders sell
their entitlements in full through
a broker?
31 How do +security holders sell
part of their entitlements
through a broker and accept for
the balance?
32 How do +security holders
dispose of their entitlements
(except by sale through a
broker)?
33 +Despatch date
Part 3 - Quotation of securities
You need only complete this section if you are applying for quotation of securities
34 Type of securities
(tick one)
(a) ⌧
Securities described in Part 1
(b)
All other securities
Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid,
employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible
securities
Entities that have ticked box 34(a)
Additional securities forming a new class of securities
Tick to indicate you are providing the information or
documents
35 If the +securities are +equity securities, the names of the 20 largest holders of the
additional +securities, and the number and percentage of additional +securities
held by those holders
36 If the +securities are +equity securities, a distribution schedule of the additional
+securities setting out the number of holders in the categories
1 ‐ 1,000
1,001 ‐ 5,000
5,001 ‐ 10,000
10,001 ‐ 100,000
100,001 and over
37 A copy of any trust deed for the additional +securities
+ See chapter 19 for defined terms.
Appendix 3B Page 6 1/1/2003
Entities that have ticked box 34(b)
38 Number of securities for which
+quotation is sought
39 Class of +securities for which
quotation is sought
40 Do the +securities rank equally in
all respects from the date of
allotment with an existing +class
of quoted +securities?
If the additional securities do not
rank equally, please state:
• the date from which they do
• the extent to which they
participate for the next
dividend, (in the case of a
trust, distribution) or interest
payment
• the extent to which they do
not rank equally, other than in
relation to the next dividend,
distribution or interest
payment
41 Reason for request for quotation
now
Example: In the case of restricted securities, end
of restriction period
(if issued upon conversion of
another security, clearly identify
that other security)
Number +Class
42 Number and +class of all
+securities quoted on ASX
(including the securities in clause
38)
Quotation agreement
1 +Quotation of our additional +securities is in ASX’s absolute discretion.
ASX
may quote the +securities on any conditions it decides.
2 We warrant the following to ASX.
• The issue of the +securities to be quoted complies with the law and is
not for an illegal purpose.
• There is no reason why those +securities should not be granted
+quotation.
• An offer of the +securities for sale within 12 months after their issue
will not require disclosure under section 707(3) or section 1012C(6) of
the Corporations Act.
Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be
able to give this warranty
• Section 724 or section 1016E of the Corporations Act does not apply to
any applications received by us in relation to any +securities to be
quoted and that no‐one has any right to return any +securities to be
quoted under sections 737, 738 or 1016F of the Corporations Act at the
time that we request that the +securities be quoted.
• If we are a trust, we warrant that no person has the right to return the
+securities to be quoted under section 1019B of the Corporations Act at
the time that we request that the +securities be quoted.
3 We will indemnify ASX to the fullest extent permitted by law in respect of any
claim, action or expense arising from or connected with any breach of the
warranties in this agreement.
4 We give ASX the information and documents required by this form.
If any
information or document not available now, will give it to ASX before
+quotation of the +securities begins.
We acknowledge that ASX is relying on
the information and documents.
We warrant that they are (will be) true and
complete.
Sign here: .................
Date: .....05/11/08.......
(Director)
Print name: ..Brett Manning..
== == == == ==
+ See chapter 19 for defined terms.
Appendix 3B Page 8 1/1/2003