Aurum Mining PLC (LON:AUR) has taken its next step away from the resources sector to investing in UK cyber security companies by unveiling a cash raising and plans to change its name.
The AIM-listed group said it is launching a placing of up to 150 million shares at a price of 4p each, in order to raise £6mln in cash to fund its initial pipeline of acquisition targets.
The placing price is a discount of approximately 30% to yesterday’s closing price, and Aurum shares were 19% lower at 4.625p in early afternoon trading.
The stock has risen more than four-fold in the past three months on speculative interest.
READ: What next for Aurum Mining? …
The company also said it will change its name to Shearwater Group PLC, subject to shareholder approval in January, and divest its existing mining assets over the coming months.
David Williams, Aurum Mining’s chairman, said: “We now have a team with substantial experience of operating within the technology, defence, cyber, information security and communication sectors, and a track record of delivering shareholder value through accelerated buy and build processes.
He added: “This is an exciting time for the company."
Transformation …
Williams is known in the City for turning his investment vehicle Marwyn into a £1bln-valued quarrying and aggregates business, Breedon Group PLC (LON:BREE), through some aggressive acquisitions.
Aurum has gone on a hiring spree recently, recruiting high-profile figures from the aerospace, defence and cyber sectors, fuelling rumours it is preparing to change direction into those areas.
On October 24, Aurum appointed Stephen Ball, most recently UK chief executive of US defence giant Lockheed Martin and a former chief executive of GCHQ as a non-executive director.
A fortnight earlier, the group had also named Robin Southwell, the former chief executive of Airbus UK as a non-exec.
Michael Stevens, the former head of international market development for Airbus Defence and Space, had been appointed Aurum’s chief executive earlier that month.
