Aurumin Ltd (ASX:AUN) is cashed up to develop the flagship Sandstone Gold Project in Western Australia, which already holds a mineral resource estimate of 946,000 ounces of gold.
The company's $2.5 million placement received firm commitments by existing major shareholders and directors, with bids received well in excess of the offer size – requiring a scale-back.
Collin St Asset Management and associated parties committed to $700,000 worth of shares, while directors and management of Aurumin will bid for $396,000 subject to shareholder approval.
Boutique Melbourne firm Peak Asset Management acted as lead manager to the placement.
Focused on advancing to production at Sandstone
“We are very pleased to have cleared the remaining balance of the Convertible Note and thank Collins St, existing shareholders, and directors for their support of the placement,” Aurumin managing director Brad Valiukas said.
“Aurumin is now debt free with a strong cash position, having transformed the balance sheet, and we are unlocking potential for growth.
“We look forward getting out and drilling at our flagship 946,000-ounce Sandstone Gold Operations ASAP.
“Following recent divestments Aurumin is strongly focused on the Sandstone Project and will look to generate the critical mass required for future production starting with open pits.”
Aurumin intends to begin drilling at Sandstone in April, beginning with existing targets on its established mining leases.