Interra Resources to Increase Strategic Stake in Morella Corporation via Institutional Placement

Key Highlights for Investors

• Interra Resources Limited (SGX: 5GI) has announced its intention to subscribe for 7,900,000 new shares in Morella Corporation Limited (ASX-listed) through an Institutional Placement.
• The Company currently holds a 12.24% stake in Morella, making it a “substantial holder” under Australian law.
• The Institutional Placement, announced by Morella, seeks to raise A\$2.1 million (approx. US\$1.48 million) via the issuance of 52,500,000 new fully paid ordinary shares at A\$0.04 per share.
• Participants, including Interra, will receive one free-attaching option (exercise price A\$0.06, 3-year expiry) for every new share subscribed.
• Interra’s proposed subscription is valued at A\$316,000 (approx. US\$223,006), representing about 1.88% of Morella’s enlarged share capital (post-placement).
• If approved by Morella’s shareholders, Interra’s stake will increase to 12.59%.
• The placement is in two tranches; Interra is participating in the second tranche (subject to Morella shareholder approval at an EGM in late April 2026).

Strategic Rationale and Details

Interra Resources’ participation in this placement is aligned with its continuing strategy to diversify and strengthen its portfolio, particularly in the area of critical minerals and renewable energy. The funds raised by Morella will be allocated towards exploration and technical programs at its Mount Edon, Mallina, and Tabba Tabba projects, as well as corporate costs and working capital.

The Company will pay the subscription amount fully in cash, funded through internal resources. This move signals Interra’s commitment to maintaining and slightly increasing its substantial holding in Morella, a company with an active pipeline of lithium, rubidium, titanium, and other critical minerals projects across Australia and the USA.

Shareholder Information and Potential Price Sensitivity

• The transaction is classified as a non-discloseable transaction under Chapter 10 of the SGX Mainboard Rules, as the relative figures (even when aggregated with a prior convertible note facility to Morella) do not exceed the 5% threshold. Therefore, it does not require approval from Interra shareholders.
• No material impact is expected on Interra’s net tangible assets per share or earnings per share for the financial year ending 31 December 2026.
• Director’s Interest: Ng Soon Kai, Interra’s Executive Chairman and controlling shareholder, directly holds 10,336,787 Morella shares (approx. 2.81%) and a deemed interest in an additional 7,000,000 shares (approx. 1.90%), through his spouse.
• No new directors or service contracts will be appointed or entered into as a result of the Placement.

About Morella Corporation Limited

Morella is an ASX-listed exploration and mineral resource development company focused on critical minerals necessary for the clean energy transition, with advanced projects in Australia and the United States. The placement proceeds will fund exploration in lithium, rubidium, and titanium—sectors closely watched by investors seeking exposure to the renewable energy value chain.

About Interra Resources Limited

Interra Resources is a Singapore-listed petroleum exploration and production company, now actively venturing into renewable energy. The company is engaged in strategic collaborations, such as floating solar farm installations in Indonesia and potential equity stakes in silica sand concessions, and has been included in PT PLN Nusantara Power’s Long List for strategic partnerships in Indonesian power projects.

Potential Price-Moving Aspects

• Interra’s increased stake in Morella signals continued strategic interest in critical minerals, which could be seen as a positive catalyst by investors seeking exposure to the energy transition sector.
• The transaction’s non-discloseable status and absence of earnings dilution or asset disposal risk mitigate downside risk.
• Investors should monitor the outcome of Morella’s April 2026 EGM for final approval of Tranche 2, which is a condition precedent for Interra’s increased shareholding.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a licensed financial advisor before making investment decisions. The information herein is based on company disclosures and is subject to change without notice.

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