Bellevue Gold capital raising letter

January 29, 2023

This email was sent on Saturday, 14 Jan 2023 just after Bellevue Gold's $10m SPP closed.

Hi Steve, Luke and Paul,

I'm not a shareholder in Bellevue Gold but this is just a quick email to request that you be generous to your retail shareholders in the use of your discretion when it comes to expanding or scaling back the $10m SPP which closed last night.

I track all capital raisings above $20m since March 2020 when COVID first hit on this master list and you can see the entry for your raising currently reads as follows:

"January 13: Bellevue Gold (BGL): the Perth-based miner was capitalised at $1.26 billion going into a $60 million placement which was priced at $1.05, a hefty 13.2% discount to the previous close of $1.21. Will be followed by a $10m SPP for the 12,000 retail shareholders which is only 2.77% of the $360m theoretical maximum amount of applications. Placement under-written by Macquarie and Canaccord Genuity and substantial holders are Blackrock, Bank of Nova Scotia and Van Eck. Stock at $1.32 on the closing date so expecting it will have been swamped. Emailed the company asking for a lift in the cap."

For guidance, here is a long list of companies which have un-capped over-subscribed SPPs in the past.

And here is an equally long list of examples of where the SPP cap was lifted, but a scale back was still imposed.

I think it would be fair to match the $60 million placement with a $60 million SPP, if demand is strong enough. And when it comes to the scale back formula, please go with a minimum allocation like others on this list.

Finally, it would be great if you could embrace best practice participation data disclosure like the companies on this list.

For the avoidance of doubt, that would read something like this:

"The Bellevue Gold SPP offer was sent to 21,134 shareholders and total valid applications of $77.4 million were received from 7,895 holders. Given this strong demand, the board has decided to expand the SPP to $60 million, matching the earlier placement. The scale back formula will see all applicants receive a minimum allocation of $5000 worth of shares and then only those shareholders with more than 10,000 shares on the record date receiving additional shares for the balance of their application."

If you do go for a scale back based on size of holding, please include a table similar to what QBE did with this 2009 SPP announcement.

Please forward this email to the full board and all parties involved in the SPP scale back and allocation decision and thank you for your consideration.

Kind regards
Stephen Mayne