OzAurum Resources Ltd (ASX:OZM) is aiming to raise $2 million in an underwritten share purchase plan (SPP) to follow-up the recent virgin gold Demag Zone discovery at the Mulgabbie North Project.
In addition, funds will be allocated to continue reverse circulation (RC) drill testing of aircore saprolite gold anomalies and extensions at the Ben and James prospects, expand exploration at the high-grade Patricia Gold Project and for general working capital.
Underwritten to $2 million
The SPP at $0.16 per share will be fully underwritten by Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited, which is acting as lead manager and underwriter.
CEO and managing director Andrew Pumphrey said: "We would like to thank Canaccord for acting as OzAurum’s lead manager and underwriter and look forward to welcoming new shareholders to the company."
SPP details
Under the SPP, eligible shareholders may apply to purchase up to $30,000 worth of new fully paid ordinary shares in the company without paying brokerage or other transaction costs.
Participation is open to all holders of OzAurum shares as at 7.00pm (AEST) on Monday, May 30, 2022, with a registered address in Australia or New Zealand.
The issue price of $0.16 per new share represents a discount of 17.9% to the last closing price on Friday, May 27, 2022, being $0.195 per share, and a 20% discount to the volume weighted average price of shares traded during the five ASX trading days prior to May 30, 2022.
“Can move quickly”
“This raising ensures that OzAurum can move quickly to maximise the full value of both the Mulgabbie and Patricia projects for our shareholders,” Pumphrey said.
"The company will be well funded to continue our exploration program, which has significant potential to create further value at these advanced gold projects.
"Recent exploration, including the virgin gold discovery of the Demag Zone further demonstrates the potential for Mulgabbie North to deliver a significant gold discovery situated right alongside the Northern Star Carosue Dam Mill.
"In addition, expanded exploration efforts are planned at the high-grade Patricia Gold Project - working to resolve the structural complexity with the aim of targeting high-grade gold mineralisation at depth."
Extensive drilling
OZM’s exploration plan includes up to 20,000 metres of RC drilling, 10,000 metres of aircore drilling and 3,000 metres of diamond drilling.
An RC rig began drilling at Mulgabbie North’s Demag Zone on Monday, May 30, 2022, and a diamond rig will continue drilling at the Demag Zone from next week.
Top-up placement
Upon completion of the SPP OZM may elect to raise a further $1 million (before costs) through the issue of new shares to sophisticated and professional investors at the same issue price as under the SPP.
This top-up placement, if conducted, would utilise the company’s available placement capacity pursuant to ASX Listing Rule 7.1.
If the total of the application monies under the SPP is greater than $2 million, OZM’s board reserves the right to reject or scale back any application for shares in whole or in part in its absolute discretion.