Aurumin Ltd (ASX:AUN) has kicked off a $3.1 million capital raise involving a $600,000 share placement and $2.5 million entitlement offer to fund the continued exploration and expansion of the flagship Sandstone operations.
The company has received firm commitments for the placement, which intends to raise $600,000 through the purchase of shares at $0.08 per ordinary share, with one free attaching option for every share subscribed for.
These options will be exercisable at $0.25 a share with an expiry date of August 18, 2024.
Concurrently, Aurumin is undertaking a non-renounceable entitlement offer on the basis of one new share for every five AUN shares held as of November 15, 2022.
The entitlement offer also includes a free attaching option for every one new share subscribed for under the offer, under the same terms as the share placement.
Funds to enable aggressive exploration
“The capital raising will enable Aurumin to continue to aggressively explore and expand our Sandstone operations,” Aurumin managing director Brad Valiukas said.
“We have been maintaining a dual-focused approach since acquiring the Central Sandstone Project, to both optimise existing resources and identify new resources.
“We have recently released our first resource upgrade, expanding our aggregate resource to 946,000 ounces, underpinned by an improvement in both ounces and grade at the Two Mile Hill underground resource of 574,000 ounces at 1.6 g/t gold.
“The next drill program at Sandstone will focus on the current geochemical and structural targets, with plans and Programs of Works (PoWs) currently being finalised.
“This capital raising will allow us to progress this drilling and continue to advance the project as a whole.
“Soil sampling work continues to progress in the background and we expect to release the first results from tenement E57/1140 during November.”
Should there be any unsubscribed securities at the end of the capital raise, Aurumin intends to include a ‘top up’ offer for those who have already applied for their full entitlement, and a shortfall offer to new investors who receive an invitation to participate.