The Offer

Company Overview

The Company is an exploration company with Australian registration that primarily aims to explore and perhaps develop its Jimberlana Project on the Yilgarn Craton for battery metals and any other commodities that have the potential to increase shareholder wealth. The Corporation is the sole owner of 7 exploration license applications totaling 687 square kilometers and an additional 2 awarded exploration licenses spanning 253 square kilometers. The approved exploration licenses are concentrated on 75 km of the Jimberlana Dyke's rarely investigated strike, which is home to the Bronzite Ridge nickel laterite deposit and past drill holes that reported nickel sulphide mineralization.

Key Highlights

Primary Offering: By issuing up to 25,000,000 Offer Shares at a price of AUD 0.20 per Offer Share, the Company hopes to increase the Offer Amount, which is up to AUD 5,000,000 (before costs). Additionally, this prospectus contains offers for 500,000 Performance Rights to Mr. Andrew Lambert, 2,000,000 Lead Manager Options exercisable at AUD 0.20 each on or before the date that is 2 years after the date the company is admitted to the Official List, and 1,000,000 Management Options exercisable at AUD 0.30 each on or before the date that is 3 years after that date.

Jimberlana Project:

In the Eastern Goldfields of Western Australia, around 550 km east of Perth, the Company entirely holds a portfolio of tenements totaling 940 km2. The Jimberlana Project, which is about 60 kilometers west of Norseman and is easily accessible from a section of an unsealed major road that connects the highway at Norseman to a bitumen road network at Hyden and then onto Perth, consists of 2 exploration licenses that have been granted and 7 exploration license applications.

Use of proceeds:

Dividend policy: A dividend policy is not currently in place for the Firm. The Business intends to provide dividends to Shareholders from its earnings. When the company can pay dividends, a dividend policy will be formed, and it will be based on the profitability and financial situation of the company at that time.

Nickel Commodity Analysis:

Concerns about consistently low demand and an increase in global supplies caused nickel futures to trade below USD 25,000 per tonne, the lowest level since November 2022. Investors are nonetheless nervous about a demand-sucking global slump despite China reopening and several processing industries increasing production. According to the International Nickel Study Group, the global nickel market will switch from a deficit to a surplus in 2022 on the supply side. To reach 1.58 million tonnes in 2022, Indonesian output surged by approximately 50% from a year earlier, making up nearly 50% of the world's supply. But, the Philippines, the second-largest producer of nickel in the world, may impose a nickel export tax, like that of its neighbor Indonesia, reducing supply uncertainty. After a severe short squeeze last year, nickel momentarily crossed the USD 100,000 threshold.

Financial Highlights (Expressed in AUD):

• Pre-revenue company: Throughout the time frame of 31 March 2022 to 30 June 2022, no revenue was generated. If the Company cannot demonstrate that minerals exist at the Projects, that they can be mined and sold, and that they are commercially recoverable, it will not be able to generate any revenue. The Company may generate income via the sale of its assets and/or the collection of royalties from the Projects.
• Current profitability and liquidity condition: The Consolidated Entity reported negative cash flows from operating activities of AUD 18,169 and total comprehensive loss attributable to members of the entity of AUD 91,903 during the quarter that ended on June 30, 2022. To execute the Company's primary activities and meet the Company's working capital needs without having to raise additional capital, the present cash resources will not be adequate to finance the planned transactions.

Key Management Highlights

Risk Associated (High)

Investment in the IPO of “WER” is exposed to a variety of risks such as:

• Limited Operational history: Due to the Company's recent incorporation on March 31, 2022, there isn't much operational data available to assess its current state and prospects. The prospects of the Business must be considered in light of the dangers, costs, and challenges typically experienced by businesses in their early phases of growth, particularly in the very risky and unpredictable mineral exploration industry. There is no guarantee that the Company will become commercially viable because the Project or any other mining assets it owns are being successfully explored or developed. Operational losses are anticipated to occur until the Company can realize value from the Project or similar mining assets.
• Nature of Mineral Exploration: Investors should be aware that the Project's Tenements are still in the discovery stage and that developing minerals is a risky endeavor. There can be no guarantee that further investigation of the Project or any other tenements the Company might acquire in the future will lead to the identification of an economically viable mineral resource.
• Exploration and developmental risk: The Company, which specializes in exploration, has no operating income now and is unlikely to do so until the Project is successfully developed and exploited. The Company's future capital needs will be influenced by a variety of variables, including its efforts to expand its clientele. The Company thinks the money acquired via the Offers should be enough to pay for its first business development efforts, its plans for exploring minerals, and other Company goals that are listed in the Prospectus. The Project may experience delays, an indefinite postponement of any exploration, development, or production, or possibly lose interest if the Company is unable to secure adequate funding for its operations and future developments.

Conclusion

The Firm is a mining exploration corporation; however, it is a pre-revenue stage company. So, unless the Company can demonstrate that minerals are found at the Projects, that they can be mined and sold if any, and that they are commercially recoverable, it will be unable to generate money. The Corporation may generate income via the sale of its assets and/or the collection of royalties from the Projects. As a result, it should be noted that the Company's capacity to profit from its activities is not certain and depends on several future unknown occurrences as well as the significant volatility of the values of the underlying commodities.

Hence, given the financial performance of the company for the period ending June 30, 2022, incurred net losses, and associated risks “Western Australia Energy Resources Limited (WER)” IPO seems “Neutral" at the IPO price.