Aurumin Ltd (ASX:AUN) has entered into drill for equity agreement with Topdrill Pty Ltd.
The agreement allows Aurumin, at its own election, to satisfy up to 50% of drilling costs invoiced by Topdrill by the issue of ordinary AUN shares from its LR7.1 capacity, up to a maximum of $1,000,000.
The issue price is to be determined by the five-day volume weighted average price (VWAP) immediately preceding each invoice and shares are to be escrowed for six months from the invoice date.
Great industry support
Aurumin managing director Brad Valiukas said: "This is great industry support from Topdrill, one of the best drilling contractors in WA, for both the company and our projects.
“The next drill program at Sandstone will commence on the recently defined geochemical and structural targets on the mining leases, and this agreement will assist us to commence drilling those targets early in the new year.
“Gold targets are across multiple lithologies and include BIF hosted mineralisation (Shillington North, Two Mile West, Ridge North, Nungarra), lode style targets in mafic and ultramafic (Nugget Patch, Three Mile) and intrusive hosted stockwork style mineralisation (Hatton).
“ Target (NYSE:TGT) generation is ongoing and drilling will expand with additional data. We remain focused on generating critical mass for future production. Testing these targets gives us the opportunity to build on our existing 946,000-ounce gold Sandstone operations resource.”