Aurumin Ltd (ASX:AUN) has its sights set on up to $4.7 million as part of a capital raise to fund further exploration and expansion of the company’s Sandstone Gold Operations in Western Australia.
This capital raise comprises a $760,000 placement and a $3.9 million entitlement offer, which will enable the company to continue its ‘dual-focused approach’ of optimising existing resources and identifying new resources at the project.
Sandstone Operations, which include the Central Sandstone Project, hold a combined mineral resource estimate of 19.3 million tonnes at 1.5 g/t gold for 946,000 ounces, with plenty of exploration upside offering potential to increase that estimate.
The entitlement offer is partially underwritten by GBA Capital for up to $1.24 million, which along with the placement ensures a minimum capital raising of $2 million before costs.
Exploration and expansion
Aurumin managing director Brad Valiukas said: “The company appreciates the support of new and existing shareholders in the capital raising.
“The capital raising will enable Aurumin to continue to explore and expand our Sandstone Operations.
“We will continue our dual-focused approach at the Central Sandstone Project, to both optimise existing resources and identify new resources.
“As part of this approach, the next drill program at Sandstone will focus on near-surface geochemical and structural targets, which are already identified on the mining leases.
“Other ongoing activity at Sandstone will continue to build the project overall with ongoing early-stage target identification through geochemistry and geological mapping on the exploration tenements and we hope to expand the tenement footprint further with the upcoming ballot process, where 14 exploration applications are lodged, including immediately adjacent to Aurumin’s Central Sandstone Project.”
Fundraising summary
For the placement, Aurumin has received firm commitments to raise $760,000 from sophisticated and professional investors at $0.04 per share with one free attaching option for every share.
Meanwhile, the entitlement offer aims to raise $3.9 million for $0.04 per share on the basis of one new share for every two new shares held and one free attaching quoted option for every share subscribed and issued under the entitlement offer.
The quoted options are expected to be listed under ticker ASX: AUNOB and are exercisable at $0.07 each and have an expiry date of August 31, 2024.
Sandstone operations
The Central Sandstone Project is 12 kilometres south of the township of Sandstone, 520 kilometres northeast of Perth, between the mining towns of Mt Magnet and Leinster in the East Murchison Mineral Field of Western Australia.
The project comprises granted tenure covering 112 square kilometres, including two granted mining licenses.
The Central Sandstone Project also includes a non-operating 500,000 tonnes per annum CIL processing plant, all associated infrastructure, operating licences, permitted tailings storage facility and bore field, and camp facilities located on freehold title within the town of Sandstone.