Prospectus - Kingsrose Mining

Application of Proceeds at Full Subscription
Two year development budget (2) $2,511,605
Repayment of previous Joint Venture liabilities (3) $631,472
Mining contact services payments to Westralmen Pty Ltd (4) $836,000
Two year corporate administration costs $600,000
Director salaries for two years $860,000
Two year convertible note investment payments (5) $264,000
Costs of the Offer (6) $400,000
Repayment to bank of equipment loan $251,212
Stamp duty on Asset Sale Agreement $144,000
General Working Capital $344,054
Total $6,842,343
The actual expenditures may vary from the above estimates and the Board reserves the right to appropriately
vary the expenditures dependent on circumstances and other opportunities.
(1) In relation to its Joint Venture interest the Company has received net sales of $611,602 from the sale
of existing gold inventory from the Sand Queen Gold Mine produced mainly from ore mined during
development after payment of a 2% royality.
(2) The two year development budget is itemised by the Independent Geologist in his report at section 8.
(3) See section 4.4 (f) in the Investigating Accountants Report.
(4) As set out in section 11 the annual services fee payable to Westralmen Pty Ltd for mining services is
$418,000.
(5) Interest of 6% per annum is payable on the face value of the Convertible Notes,which face value totals
$2,200,000.
(6) The costs of the Offer assumes a commission fee of $300,000 being 5% on $6,000,000.
3.6 Working Capital
On successful completion of the Offer with at least Full Subscription, the Company will have enough working
capital to carry out the objectives stated in this Prospectus.
3.7 Capital Structure
The capital structure of the Company will be:
Shares
Existing Shareholders 8,800,020
Shares to be issued to the Kingsrose Unit Trust (1) 20,000,000
Shares to be issued to Airedale (Asia) Limited (2) 6,250,000
Shares under this Prospectus 30,000,000
Total Shares 65,050,020
Convertible Notes (Unlisted)
JW Phillips (3) 6,000,000
Airedale (Asia) Limited (3) 5,000,000
Total Convertible Notes 11,000,000
Options (Unlisted)
Options to Director’s and Company Secretary (4) 5,500,000
Total Options 5,500,000
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