Aurum Resources Ltd (ASX:AUE) has successfully completed a $35.6 million strategic placement, issuing 100 million ordinary shares at $0.356 per share. The placement, which follows shareholder approval at a July 8 general meeting, is designed to bolster the company's gold exploration and development efforts in Côte d'Ivoire, in West Africa.
The placement comprised $23.89 million in cash and about 2.9 million shares in TSX-listed Montage Gold Corp (TSX: MAU), which will help further fund Aurum's exploration programs.
Funds to fuel growth at Boundiali and Napié projects
Aurum now holds more than $45 million in cash, including the Montage shares, which will be deployed to accelerate its growth initiatives in Côte d'Ivoire. The company intends to focus on expanding its resource base at its 1.6-million-ounce (Moz) Boundiali Gold Project and 0.87Moz Napié Gold Project, with a major focus on drilling and feasibility studies.
Location of Aurum’s projects in Côte d'Ivoire.
The funds raised will be used for several key initiatives, including:
- Accelerating resource definition drilling at Boundiali and exploration drilling at Napié
- Expanding Aurum’s diamond drilling fleet from eight to 10 rigs
- Completing two JORC resource updates for the Boundiali project and one update for Napié in 2025
- Conducting a preliminary feasibility study (PFS) for Boundiali, with the PFS expected by the end of 2025, and a definitive feasibility study (DFS) for the second half of 2026
- Advancing applications for mining exploitation licences, along with environmental and social impact studies (ESIA) and approval
Strategic investors sign on
Key investors in the placement include the Lundin family and associates, who invested $11.71 million, securing a 9.9% stake in the company post-placement. Zhaojin Capital Ltd, a subsidiary of Zhaojin Mining Industry Company Ltd, also participated with a cash investment of $8.19 million, increasing its interest in Aurum to 8.5%.
In addition, Montage Gold Corp’s investment via the share issuance will give it a 9.9% stake in Aurum.
“We are very encouraged by the strong support from highly regarded strategic investors, which is a true endorsement of the quality of our two gold projects – Boundiali and Napié – in Côte d’Ivoire, and recognition of our practical, cost-effective and efficient exploration approach and fast-tracking project development strategy,” said Aurum managing director Dr. Caigen Wang.
“The cash from the placement, together with existing cash, will enable Aurum to accelerate growth of gold resources at both Boundiali and Napié.”
Côte d'Ivoire’s emerging gold district
Aurum’s gold projects are located in Côte d'Ivoire’s burgeoning gold district. The Boundiali project lies in the same greenstone belt as Resolute Mining’s 11.5Moz Syama gold mine, Perseus Mining’s 1.4Moz Sissingué project, and Montage Gold’s 4.5Moz Koné project. Aurum’s Napié project is similarly well-positioned to contribute to Côte d'Ivoire’s expanding gold production.
Location of Aurum’s Boundiali and Napié gold projects in Côte d'Ivoire.
Aurum has made significant strides in its exploration efforts, with its own fleet of eight diamond drill rigs enabling faster and more cost-effective exploration compared with many of its peers. The company is confident that the strategic placement will allow it to continue accelerating its projects, with the goal of fast-tracking both the Boundiali and Napié projects toward production in one of Africa's most promising mining regions.