On 8 October 2026, Sultan Resources Limited (ASX:SLZ) lodged a Bonus Option Issue Prospectus with ASIC and ASX. The prospectus offers a pro-rata non-renounceable issue of 1 new option for every 8 shares held by shareholders on the record date, at an issue price of A$0.001 per option, to raise up to A$91,432.

The terms of the offer

Based on the Capital Structure at the date of the prospectus, approximately 91,431,560 new Options may be issued under the offer. Fractional entitlements are rounded up. Each new option has an exercise price of A$0.03 and expires at 5:00pm (WST) on 12 July 2030.

In addition, the company offers up to 25,000,000 new options to the lead manager, Xcel Capital Pty Ltd, or its nominees, for nil cash consideration as part of the lead manager mandate. These options are on the same terms. The prospectus states the securities offered should be considered highly speculative.

Stated purposes and use of funds

The prospectus lists the primary purposes as rewarding shareholders for continuing to support the company, giving long-term supportive shareholders potential greater exposure to future success, and providing a potential source of additional capital if the options are exercised. An additional purpose is to remove trading restrictions on shares issued on exercise of the options, because the options are issued with disclosure under the prospectus.

The A$91,432 raised directly is intended to be applied first toward the costs of the offer and then toward working capital. If all options were exercised, up to A$3,429,947 could be raised. The prospectus estimates that cash reserves would increase by A$41,760 after expenses, and that options on issue would rise from 162,492,117 to 278,923,677.

Timetable and eligibility

The ex date is 13 October 2026 and the Record Date is 14 October 2026. The offer opens and the prospectus is sent on 19 October, with a closing date of 5:00pm on 28 October 2026, which the directors may extend. Securities are expected to be issued on 4 November 2026 and quoted on 6 November 2026.

The offer is not extended to shareholders with registered addresses outside Australia and New Zealand.

Sector backdrop

Bonus option issues are a way for listed companies to give shareholders an option to buy shares at a set price in future, usually for a nominal price. Options carry no obligation to exercise and have value only if the share price exceeds the exercise price during the option’s life.

A transaction-specific prospectus, as used here, is a shorter document for companies already listed and focuses on the effect of the issue and the rights attaching to the securities.

Risks shareholders should weigh

The prospectus states the securities should be considered highly speculative. Options may expire worthless if the share price does not exceed A$0.03 before 12 July 2030, and shareholders who do not take up their entitlement cannot sell it, because the offer is non-renounceable.

The direct fundraising is small, at A$91,432, with a stated net effect on cash of A$41,760 after expenses. Any larger funding would depend on options being exercised at A$0.03, which is at the holders’ discretion.

If options are exercised, existing shareholders would be diluted. The company also issues up to 25,000,000 options to the lead manager for nil consideration, and total options on issue would rise to 278,923,677. Exploration outcomes can affect how funds are applied.

What’s next

The next steps are the record date on 14 October 2026, dispatch of the prospectus on 19 October, closing on 28 October, and issue and Quotation in early November 2026, subject to any extension. Shareholders may wish to read the prospectus in full and seek professional advice before deciding.