Aurumin Ltd (ASX:AUN) has kicked-off a partially underwritten, non-renounceable entitlement offer, which gives investors the opportunity to purchase one new, fully paid ordinary share for every seven shares held at 5.00pm (AWST) on July 25, 2022.
This offer is expected to produce up to $3 million in additional funding (before costs) at a price of $0.15 per share.
The additional capital will be used to advance exploration of the wholly-owned Central Sandstone Gold Project, general working capital and to pay the costs of the offer.
AUN's entitlement offer includes a shortfall component that will allow participants to apply for any shares not subscribed by other eligible shareholders.
Participants in the entitlement offer and shortfall offer will also be offered one free attaching option (quoted option) for every one share subscribed and issued. The quoted options will be exercisable at $0.25 each and will expire on August 18, 2024.
Funds support “aggressive” exploration
“The offers will enable Aurumin to continue to aggressively explore and expand our Sandstone Operations, where we have already completed a first geochemical program, reverse circulation (RC) and diamond drilling programs and expanded our footprint,” Aurumin managing director Brad Valiukas said.
“Early results have been good with additional targets from the geochemical program and a great first diamond drill result at Two Mile Hill that returned 344 metres at 1.29 g/t [gold].
“We continue to see the Two Mile Hill underground deposit as a key part of the project going forward, with the scale to potentially underpin future production.
“We look forward to results of the remaining three diamond drill holes and RC drilling and progressing follow-up drilling at Sandstone.”
The entitlement offer, shortfall offer and quoted option offer are partially underwritten by Lazarus Corporate Finance Pty Ltd for up to $2 million; being up to 13,333,333 shares, pursuant to an underwriting agreement between Lazarus and Aurumin dated July 19, 2022.