Announcement PDF RareX Limited ACN 105 578 756 Notice of General Meeting A general meeting of the Company will be held as follows: Time and date: 10.00 am (AWST) on Wednesday, 25 May 2022 Location: at the offices of the Company, at Unit 6, 94 Rokeby Road, Subiaco, Western Australia The Notice of General Meeting should be read in its entirety. If Shareholders are in doubt as to how to vote, they should seek advice from their suitably qualified advisor prior to voting. Should you wish to discuss any matter, please do not hesitate to contact the Company Secretary by telephone on (08) 6383 6593. Shareholders are urged to vote by lodging the Proxy Form RareX Limited ACN 105 578 756 (Company) Notice of General Meeting Notice is hereby given that a general meeting of Shareholders of RareX Limited will be held at the offices of the Company, at Unit 6, 94 Rokeby Road, Subiaco, Western Australia on Wednesday, 25 May 2022 at 10.00 am (AWST) (Meeting). The Explanatory Memorandum provides additional information on matters to be considered at the Meeting. The Explanatory Memorandum and the Proxy Form form part of the Notice. The Directors have determined pursuant to regulation 7.11.37 of the Corporations Regulations 2001 (Cth) that the persons eligible to vote at the Meeting are those who are registered as Shareholders on Monday, 23 May 2022 at 5.00 pm (AWST). Terms and abbreviations used in the Notice are defined in Schedule 1. Agenda 1 Resolutions Resolution 1 – Ratification of issue of Placement Shares To consider and, if thought fit, to pass with or without amendment, each as a separate ordinary resolution the following: 'That, pursuant to and in accordance with Listing Rule 7.4 and for all other purposes, Shareholders ratify the issue of: (a) 67,618,981 Placement Shares issued under Listing Rule 7.1; and (b) 43,492,131 Placement Shares issued under Listing Rule 7.1A, on the terms and conditions in the Explanatory Memorandum.’ Resolution 2 – Approval of issue of Director Placement Shares To consider and, if thought fit, to pass without or without amendment, each as a separate ordinary resolution the following: 'That, pursuant to and in accordance with Listing Rule 10.11 and section 195(4) of the Corporations Act and for all other purposes, Shareholders approve the issue of the Director Placement Shares to the Directors (or their respective nominees) as follows: (a) up to 3,333,333 Director Placement Shares to John Young; (b) up to 1,111,111 Director Placement Shares to Jeremy Robinson; (c) up to 555,556 Director Placement Shares to Shaun Hardcastle; and Page 2 (d) up to 2,222,222 Director Placement Shares to Cameron Henry, on the terms and conditions in the Explanatory Memorandum.’ Voting exclusions Pursuant to the Listing Rules, the Company will disregard any votes cast in favour of: (a) Resolution 1(a) and (b) by or on behalf of a person who participated in the issue of the Placement Shares, or any of their respective associates; (b) Resolution 2(a) by or on behalf of John Young (and his nominees), and any other person who will obtain a material benefit as a result of the issue of these Director Placement Shares (except a benefit solely by reason of being a Shareholder), or any of their respective associates; (c) Resolution 2(b) by or on behalf of Jeremy Robinson (and his nominees), and any other person who will obtain a material benefit as a result of the issue of these Director Placement Shares (except a benefit solely by reason of being a Shareholder), or any of their respective associates; (d) Resolution 2(c) by or on behalf of Shaun Hardcastle (and his nominees), and any other person who will obtain a material benefit as a result of the issue of these Director Placement Shares (except a benefit solely by reason of being a Shareholder), or any of their respective associates; and (e) Resolution 2(d) by or on behalf of Cameron Henry (and his nominees), and any other person who will obtain a material benefit as a result of the issue of these Director Placement Shares (except a benefit solely by reason of being a Shareholder), or any of their respective associates. The above voting exclusions do not apply to a vote cast in favour of the relevant Resolution by: (a) a person as proxy or attorney for a person who is entitled to vote, in accordance with directions given to the proxy or attorney to vote on the Resolution in that way; (b) the Chair as proxy or attorney for a person who is entitled to vote, in accordance with a direction given to the Chair to vote on the Resolution as the Chair decides; or (c) a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary provided the following conditions are met: (i) the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from voting, and is not an associate of a person excluded from voting, on the Resolution; and (ii) the holder votes on the Resolution in accordance with directions given by the beneficiary to the holder to vote in that way. Page 3 BY ORDER OF THE BOARD Oonagh Malone Company Secretary RareX Limited Dated: 26 April 2022 Page 4 RareX Limited ACN 105 578 756 (Company) Explanatory Memorandum 1. Introduction The Explanatory Memorandum has been prepared for the information of Shareholders in connection with the business to be conducted at the Meeting to be held at the offices of the Company, at Unit 6, 94 Rokeby Road, Subiaco, Western Australia on Wednesday, 25 May 2022 at 10.00 am (AWST) (Meeting). The Explanatory Memorandum forms part of the Notice which should be read in its entirety. The Explanatory Memorandum contains the terms and conditions on which the Resolutions will be voted. The Explanatory Memorandum includes the following information to assist Shareholders in deciding how to vote on the Resolutions: Section 2 Action to be taken by Shareholders Section 3 Resolution 1 – Ratification of issue of Placement Shares Section 4 Resolution 2 – Approval of issue of Director Placement Shares Schedule 1 Definitions A Proxy Form is located at the end of the Explanatory Memorandum. Page 5 2. Action to be taken by Shareholders Shareholders should read the Notice including the Explanatory Memorandum carefully before deciding how to vote on the Resolution. 2.1 Voting in person To vote in person, attend the Meeting on the date and at the place set out above. 2.2 Voting by proxy A Proxy Form is attached to the Notice. This is to be used by Shareholders if they wish to appoint a representative (a 'proxy') to vote in their place. All Shareholders are invited and encouraged to attend the Meeting or, if they are unable to attend in person, sign and return the Proxy Form to the Company in accordance with the instructions thereon. Lodgement of a Proxy Form will not preclude a Shareholder from attending and voting at the Meeting in person. Please note that: (a) a member of the Company entitled to attend and vote at the Meeting is entitled to appoint a proxy; (b) a proxy need not be a member of the Company; and (c) a member of the Company entitled to cast two or more votes may appoint two proxies and may specify the proportion or number of votes each proxy is appointed to exercise, but where the proportion or number is not specified, each proxy may exercise half of the votes. The enclosed Proxy Form provides further details on appointing proxies and lodging Proxy Forms. Section 250BB(1) of the Corporations Act provides that an appointment of a proxy may specify the way the proxy is to vote on a particular resolution and, if it does: (a) the proxy need not vote on a show of hands, but if the proxy does so, the proxy must vote that way (i.e. as directed); (b) if the proxy has 2 or more appointments that specify different ways to vote on the resolution – the proxy must not vote on a show of hands; (c) if the proxy is the Chair of the meeting at which the resolution is voted on – the proxy must vote on a poll, and must vote that way (i.e. as directed); and (d) if the proxy is not the Chair – the proxy need not vote on the poll, but if the proxy does so, the proxy must vote that way (i.e. as directed). Section 250BC of the Corporations Act provides that, if: (a) an appointment of a proxy specifies the way the proxy is to vote on a particular resolution at a meeting of the Company's members; (b) the appointed proxy is not the chair of the meeting; Page 6 (c) at the meeting, a poll is duly demanded, or is otherwise required under section 250JA on the resolution; and (d) either the proxy is not recorded as attending the meeting or the proxy does not vote on the resolution, the Chair of the meeting is taken, before voting on the resolution closes, to have been appointed as the proxy for the purposes of voting on the resolution at the meeting. 2.3 Chair's voting intentions The Chair intends to exercise all available proxies in favour of all Resolutions, unless the Shareholder has expressly indicated a different voting intention. 2.4 Submitting questions Shareholders may submit questions in advance of the Meeting to the Company. Questions must be submitted by emailing the Company Secretary at oonagh@rarex.com.au by 5.00 pm (AWST) on Monday, 23 May 2022. Shareholders will also have the opportunity to submit questions during the Meeting in respect to the formal items of business. In order to ask a question during the Meeting, please follow the instructions from the Chair. The Chair will attempt to respond to the questions during the Meeting. The Chair will request prior to a Shareholder asking a question that they identify themselves (including the entity name of their shareholding and the number of Shares they hold). 3. Resolution 1 – Ratification of issue of Placement Shares 3.1 General On 3 March 2022, the Company announced a capital raising of $10,650,000 (before costs). The capital raising is comprised of the following two tranches: (a) the issue of 111,111,112 Shares to unrelated parties at an issue price of $0.09 per Share (Placement Shares); and (b) the issue of up to 7,222,222 Shares to the Directors (or their respective nominees) at an issue price of $0.09 per Share (Director Placement Shares), (together, the Placement). On 10 March 2022, the Company issued the Placement Shares as follows: (a) 67,618,981 Placement Shares were issued using the Company’s placement capacity under Listing Rule 7.1; and (b) 43,492,131 Placement Shares were issued using the Company’s placement capacity under Listing Rule 7.1A. Resolution 1(a) and (b) seeks the approval of Shareholders pursuant to Listing Rule 7.4 to ratify the issue of the Placement Shares. Page 7 3.2 Listing Rules 7.1, 7.1A and 7.4 Broadly speaking, and subject to a number of exceptions, Listing Rule 7.1 limits the amount of Equity Securities that a listed company can issue without the approval of its shareholders over any 12 month period to 15% of the fully paid ordinary shares it had on issue at the start of that period. Under Listing Rule 7.1A, an eligible entity can seek approval from its members, by way of a special resolution passed at its annual general meeting, to increase this 15% limit by an extra 10% to 25%. The Company obtained this approval at its annual general meeting held on 26 November 2021. The issue of the Placement Shares does not fit within any of the exceptions to Listing Rules 7.1 and 7.1A and, as it has not yet been approved by Shareholders, effectively uses up part of the Company’s 15% placement capacity under Listing Rule 7.1 and 10% placement capacity under Listing Rule 7.1A. This reduces the Company's capacity to issue further Equity Securities without Shareholder approval under those Listing Rules for the 12 month period following the issue of the Placement Shares. Listing Rule 7.4 provides an exception to Listing Rules 7.1 and 7.1A. It provides that where a company in a general meeting ratifies the previous issue of securities made pursuant to Listing Rules 7.1 and 7.1A (and provided that the previous issue did not breach Listing Rules 7.1 and 7.1A), those securities will be deemed to have been made with shareholder approval for the purpose of Listing Rules 7.1 and 7.1A. The effect of Shareholders passing Resolution 1(a) and (b) will be to allow the Company to retain the flexibility to issue Equity Securities in the future up to the 15% additional placement capacity set out in Listing Rule 7.1 and the 10% additional placement capacity set out in Listing Rule 7.1A, without the requirement to obtain prior Shareholder approval. If Resolution 1(a) is passed, 67,618,981 Placement Shares will be excluded in calculating the Company's 15% limit in Listing Rule 7.1, effectively increasing the number of Equity Securities it can issue without Shareholder approval over the 12 month period following the issue date. If Resolution 1(b) is passed, 43,492,131 Placement Shares will be excluded in calculating the Company's 10% limit in Listing Rule 7.1A, effectively increasing the number of Equity Securities it can issue without Shareholder approval over the 12 month period following the issue date. If Resolution 1(a) is not passed, 67,618,981 Placement Shares will continue to be included in the Company's 15% limit under Listing Rule 7.1, effectively decreasing the number of Equity Securities the Company can issue or agree to issue without obtaining prior Shareholder approval, to the extent of 67,618,981 Equity Securities for the 12 month period following the issue of those Placement Shares. If Resolution 1(b) is not passed, 43,492,131 Placement Shares will continue to be included in the Company's 10% limit under Listing Rule 7.1A, effectively decreasing the number of Equity Securities the Company can issue or agree to issue without obtaining prior Shareholder approval, to the extent of 43,492,131 Equity Securities for the 12 month period following the issue of those Placement Shares (and assuming the Company's approval under Listing Rule 7.1A remains in force for this period). Page 8 3.3 Specific information required by Listing Rule 7.5 Pursuant to and in accordance with Listing Rule 7.5, the following information is provided in relation to the ratification of the issue of the Placement Shares: 3.4 (a) The Placement Shares were issued to sophisticated and institutional investors, none of whom is a related party. Mr Simon Lee, a substantial shareholder and Material Investor participated in the Placement and received 7,222,223 Shares. Canaccord Genuity (Australia) Limited and Bridge Street Capital Partners Pty Ltd acted as Joint Lead Managers to the Placement. The participants in the Placement were identified through a bookbuild process, which involved the Joint Lead Managers seeking expressions of interest to participate in the Placement from existing contacts of the Company and clients of the Joint Lead Managers. (b) A total of 111,111,112 Placement Shares were issued as follows: (i) 67,618,981 Placement Shares were issued using the Company’s placement capacity under Listing Rule 7.1; and (ii) 43,492,131 Placement Shares were issued using the Company’s placement capacity under Listing Rule 7.1A. (c) The Placement Shares are fully paid ordinary shares in the capital of the Company and rank equally in all respects with the Company's existing Shares on issue. (d) The Placement Shares were issued on 10 March 2022. (e) The Placement Shares were issued at $0.09 per Share. (f) The proceeds from the issue of the Placement Shares have been and are intended to be applied towards: (i) funding a major new program of drilling at Cummins Range Rare Earths Project, with 30,000 metres budgeted for 2022 to expand and upgrade the current Mineral Resource estimate; (ii) further drilling to evaluate the recent high-grade phosphate discovery adjacent to Cummins Range; (iii) study work and permitting activities at Cummins Range; (iv) business development activities; and (v) general working capital. (g) There are no other material terms to the agreement for the subscription of the Placement Shares. (h) A voting exclusion statement is included in the Notice. Additional information Resolution 1(a) and (b) are ordinary resolutions. The Board recommends that Shareholders vote in favour of Resolution 1(a) and (b). Page 9 4. Resolution 2 – Approval of issue of Director Placement Shares 4.1 General The background to the proposed issue of the Director Placement Shares is in Section 3.1 above. Resolution 2(a),(b),(c) and (d) seeks Shareholder approval pursuant to Listing Rule 10.11 for the issue of up to 7,222,222 Director Placement Shares to the Directors (or their respective nominees). The Directors have committed a total of $650,000 under the Placement. The Director Placement Shares will be issued in the following proportions: 4.2 Director Amount committed to the Placement ($) Number of Director Placement Shares John Young $300,000 3,333,333 Jeremy Robinson $100,000 1,111,111 Shaun Hardcastle $50,000 555,556 Cameron Henry $200,000 2,222,222 Listing Rule 10.11 Listing Rule 10.11 provides that unless one of the exceptions in Listing Rule 10.12 applies, a listed company must not issue or agree to issue Equity Securities to any of the following persons without the approval of its Shareholders: (a) a related party (Listing Rule 10.11.1); (b) a person who is, or was at any time in the 6 months before the issue or agreement, a substantial holder (30%+) in the company (Listing Rule 10.11.2); (c) a person who is, or was at any time in the 6 months before the issue or agreement, a substantial holder (10%+) in the company and who has nominated a director to the board of the company pursuant to a relevant agreement which gives them a right or expectation to do so (Listing Rule 10.11.3); (d) an associate of a person referred to in Listing Rules 10.11.1 to 10.11.3 (Listing Rule 10.11.4); or (e) a person whose relation with the company or a person referred to in Listing Rule 10.11.1 or 10.11.4 is such that, in ASX's opinion, the issue or agreement should be approved by its shareholders (Listing Rule 10.11.5). The Directors are related parties of the Company by virtue of being Directors. Shareholder Page 10 approval pursuant to Listing Rule 10.11 is therefore required unless an exception applies. It is the view of the Board that the exceptions set out in Listing Rule 10.12 do not apply in the current circumstances. Approval pursuant to Listing Rule 7.1 is not required for the issue of the Director Placement Shares as approval is being obtained under Listing Rule 10.11. Accordingly, the issue of the Director Placement Shares to the Directors (or their respective nominees) will not be included in the Company's 15% annual placement capacity pursuant to Listing Rule 7.1. The effect of Shareholders passing Resolution 2(a), (b), (c) and (d) will be to allow the Company to issue the Director Placement Shares, raising $650,000 (before costs). If Resolution 2(a),(b),(c) and (d) are not passed, the Company will not be able to proceed with the issue of the Director Placement Shares, and will not receive the additional $650,000 committed by the Directors. 4.3 Specific information required by Listing Rule 10.13 Pursuant to and in accordance with Listing Rule 10.13, the following information is provided in relation to the proposed issue of the Director Placement Shares: (a) The Director Placement Shares will be issued to John Young, Jeremy Robinson, Shaun Hardcastle and Cameron Henry (or their respective nominees). (b) The Directors fall into the category stipulated by Listing Rule 10.11.1 by virtue of being Directors of the Company. (c) A maximum of 7,222,222 Director Placement Shares will be issued to the Directors (or their respective nominees) in the manner and form set out in Section 4.1 above. (d) The Director Placement Shares will be fully paid ordinary Shares in the capital of the Company and rank equally in all respects with the Company's existing Shares on issue. (e) The Director Placement Shares will be issued no later than one month after the date of the Meeting. (f) The Director Placement Shares are proposed to be issued at an issue price of $0.09 each, being the same price at which the Placement Shares were issued. (g) A summary of the intended use of funds raised from the Placement is in Section 3.3(f) above. (h) The proposed issue of the Director Placement Shares is not intended to remunerate or incentivise the Directors. (i) There are no other material terms to the proposed issue of the Director Placement Shares. (j) A voting exclusion statement is included in the Notice. Page 11 4.4 Chapter 2E of the Corporations Act In accordance with Chapter 2E of the Corporations Act, in order to give a financial benefit to a related party, the Company must: (a) obtain Shareholder approval in the manner set out in section 217 to 227 of the Corporations Act; and (b) give the benefit within 15 months following such approval, unless the giving of the financial benefit falls within an exception set out in sections 210 to 216 of the Corporations Act. The proposed issue of the Director Placement Shares constitutes giving a financial benefit to related parties of the Company. The Board considers that Shareholder approval pursuant to Chapter 2E of the Corporations Act is not required in respect of the issue of the Director Placement Shares because the Shares will be issued on the same terms as those Shares issued to non-related party participants in the Placement and as such the giving of the financial benefit is on arm's length terms. 4.5 Additional information Each of Resolution 2(a), (b), (c) and (d) is an ordinary resolution. The Board declines to make a recommendation in relation to each of the resolutions which form part of Resolution 2 due to their personal interests in the outcome of the Resolution. Page 12 Schedule 1 Definitions In the Notice, words importing the singular include the plural and vice versa. $ or A$ means Australian Dollars. ASX means the ASX Limited (ABN 98 008 624 691) and, where the context permits, the Australian Securities Exchange operated by ASX Limited. AWST means Western Standard Time, being the time in Perth, Western Australia. Board means the board of Directors. Chair means the person appointed to chair the Meeting of the Company convened by the Notice. Company means RareX Limited (ACN 105 578 756). Corporations Act means the Corporations Act 2001 (Cth), as amended. Director means a director of the Company. Director Placement Shares means the issue of up to 7,222,222 Shares to the Directors (or their respective nominees), the subject of Resolution 2(a), (b), (c) and (d). Equity Security has the same meaning as in the Listing Rules. Explanatory Memorandum means the explanatory memorandum which forms part of the Notice. Joint Lead Managers means Canaccord Genuity (Australia) Limited and Bridge Street Capital Partners Pty Ltd. Key Management Personnel has the same meaning as in the accounting standards issued by the Australian Accounting Standards Board and means those persons having authority and responsibility for planning, directing and controlling the activities of the Company, or if the Company is part of a consolidated entity, of the consolidated entity, directly or indirectly, including any Director (whether executive or otherwise) of the Company, or if the Company is part of a consolidated entity, of an entity within the consolidated group. Listing Rules means the listing rules of ASX. Material Investor means, in relation to the Company: (a) a related party; (b) Key Management Personnel; (c) a substantial Shareholder; (d) an advisor; or (e) an associate of the above, Page 13 who received or will receive Securities in the Company which constitute more than 1% of the Company's capital structure. Meeting has the meaning given in the introductory paragraph of the Notice. Notice means this notice of general meeting. Placement has the meaning given in Section 3.1. Placement Shares means the 111,111,112 Shares issued under the Placement, the subject of Resolution 1(a) and (b). Proxy Form means the proxy form attached to the Notice. Resolution means a resolution referred to in the Notice. Schedule means a schedule to the Notice. Section means a section of the Explanatory Memorandum. Securities means any Equity Securities of the Company (including Shares, Options and/or Performance Rights). Share means a fully paid ordinary share in the capital of the Company. Shareholder means the holder of a Share. Page 14 [ReplaceNoImages] ✓ ✓ ✓ + REE / / ┘