Exploration company Aurum Resources on Tuesday announced it would raise about A$7-million in an oversubscribed share placement, after receiving firm commitments from institutional and sophisticated investors.
In conjunction with the placement, the company will offer placement participants one unquoted option, exercisable at A$0.312 each, for every three shares subscribed.
The ASX-listed company will use the funds for field exploration programmes at its newly acquired Boundiali gold project in Côte d’Ivoire, and for general working capital.
“We are accelerating drilling on the project, located on the same greenstone belt as the 11-million-ounce Syama, five-million-ounce Tongon and 4.5-million-ounce Koné gold deposits, where we’ve already identified seven targets at the BM prospect and have commenced a 50-hole programme at the BD prospect, which sits on a 13 km gold corridor,” said new MD Caigen Wang.
The placement will be completed in two tranches, the first of which will consist of 15.47-million new fully paid ordinary shares at A$0.24 a share and the second which will comprise 13.69-milion shares at the same price.
The issue price of A$0.24-a-share represents a 9% discount to Aurum’s last trading price of A$0.265 and an 18% discount to the 15-day volume weighted average share price of A$0.293 a share.