Aurumin Ltd (ASX:AUN) has entered into an at-the-market subscription agreement (ATM) with Acuity Capital, giving the company up to $3 million of standby equity capital over the coming 38-month period.
The company will retain control of several aspects of the ATM including:
- sole discretion as to whether to use the ATM;
- the maximum number of shares to be issued;
- the minimum issue price of shares; and
- the timing of each subscription (if any).
Aurumin is not required to use the ATM and may terminate it at any time, without cost or penalty. It may also raise capital through other means if it sees fit.
If Aurumin makes the decision to use the ATM, it will be able to set an issue price floor (at its sole discretion), with the final issue price being calculated as the greater of the nominated floor price set by Aurumin and a discount of no greater than 10% to a volume weighted average price (VWAP) over a period of the company’s choosing.
Aurumin has agreed to place 8 million fully paid ordinary AUN shares as security and has the opportunity to buy back (and cancel) the shares placed as security for no cash consideration (subject to shareholder approval).
About Aurumin
Aurumin’s gold projects are in the Southern Cross and Kalgoorlie regions of Western Australia.
Its main projects include the Mount Dimer Project and Mount Palmer Project, which are both historically producing, high-grade, gold mines with significant upside.