ROC Underscores Equity Capital Raising

ROC is pleased to announce an equity capital raising comprising an institutional placement of approximately 88 million shares and a share purchase plan ("SPP") to enable eligible shareholders to subscribe for up to A$15,000 of ordinary shares (subject to the grant of relief from the Australian Securities Exchange ("ASX")).

The equity capital raising is to strengthen ROC's balance sheet and provide financial flexibility to implement future development projects. Proceeds raised under the offer will be used to:

  • enable the commercialization of ROC's 2C contingent resources at its BMG and Beibu Gulf projects;
  • fund ongoing development activities, including drilling in relation to Zhao Dong and Basker Manta Gummy ("BMG") projects; and
  • reduce debt.

Institutional Placement

Key details of the institutional placement include the following:

  • an offer of approximately 88 million ordinary shares, representing approximately 15% of ROC's issued share capital, at an issue price to be determined under an institutional bookbuild;
  • offers to be made to institutional investors and sophisticated investors in select jurisdictions; and
  • the new shares will rank equally with existing ROC ordinary shares.

Share Purchase Plan

Key details of the SPP include the following:

  • each eligible ROC shareholder will have the opportunity to purchase new ROC ordinary shares up to a maximum of A$15,000 (subject to ASX approval);
  • the offer price of shares under the SPP will be the lower of the institutional placement price or a 5% discount to the 5 day volume weighted average price per share prior to the close of the SPP offer;
  • new shares issued under the SPP will rank equally with existing ROC ordinary shares; and
  • no brokerage will be charged to shareholders participating in the SPP.

Full details of the SPP will be provided in documentation which will be released to the ASX and distributed to shareholders.

At this time it is anticipated that the trading halt currently in place on the ASX will be lifted at the commencement of trading on June 29, 2009, pending successful completion of the institutional placement.


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