Aurumin Ltd (ASX:AUN) aims to raise A$4,962,022 from its shareholder base in an entitlement offer as part of $12.5 million capital raising plans to acquire the Sandstone Gold Project, announced on December 16 last year.
The company has lodged a prospectus for the non-renounceable pro rata entitlement offer at an issue price of $0.20 each.
Sandstone deal
Aurumin hopes to use proceeds of the capital-raising bid to seal the Sandstone deal with a $6 million completion payment.
The money will also fund exploration and development on the company's projects and will be used as working capital.
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As part of the entitlement offer, eligible shareholders can subscribe for one new share for every four shares held as at 5.00pm (AWST) on January 20, 2022. The prospectus also contains a top-up offer with both offers available to shareholders until 5.00pm (AWST) on February 8, 2022.
Eligible shareholders wishing to participate in these offers must apply for new shares before this time in accordance with the instructions set out in Section 3 of the prospectus.
About Aurumin
Aurumin has a portfolio of four gold projects, including two historical high-grade production centres, Mt Dimer and Mt Palmer.
The Mt Dimer Project is a historical mining centre that has produced in excess of 125,000 ounces of gold including 600,000 tonnes mined from six open pits and one underground mine at 6.4 g/t gold.
The company is actively exploring its tenements and is also seeking potential acquisitions – such as Sandstone – that will complement its existing focus areas.