Aldoro Resources Ltd (ASX:ARN) shareholders have a priority offer as part of the proposed Initial Public Offering (IPO) for wholly-owned subsidiary Aurum Resources Ltd.
Aurum has lodged a prospectus with the Australian Securities & Investments Commission (ASIC) to raise a minimum of $4.5 million and a maximum of $5 million in new equity via an IPO and ASX listing.
The spin-out and related IPO will facilitate the fast-tracking of exploration and possible development of the Penny South Gold Project, the Ryans Find Project and the Unaly Hill South Projects.
With Aurum focused solely on the development of the Western Australian gold projects, Aldoro will focus on exploring its highly prospective Narndee and Windimurra projects.
The prospectus contains an initial public offer of 22.5 million fully paid ordinary shares at $0.20 per share to raise $4.5 million with an ability to accept oversubscriptions of up to 2.5 million shares to raise a further $500,000, taking the maximum amount to be raised under the offer to $5 million.
The priority offer
Aldoro shareholders registered on the record date of August 20, 2021, are eligible to participate in the priority offer for a minimum parcel of $2,000 and thereafter in multiples of 2,500 shares and payment for the shares must be made in full at the issue price of $0.20 per share.
The priority offer is being made to all shareholders of Aldoro named on its register of members on the record August 20, 2021, whose registered address is in Australia or New Zealand.
The closing date for the offer is on September 14, 2021, or such an earlier or later date as the directors, in their absolute discretion, may determine.
The Aldoro subsidiary, however, clarifies that it reserves the right to extend the priority offer closing date or close the priority offer early without notice.
Indicative timetable for Aurum’s IPO.