Aurumin Ltd (ASX:AUN) has refreshed a drill for equity agreement with Topdrill Pty Ltd which gives the company flexibility to increase drilling while preserving cash.
This agreement, which expires on September 30, 2024, allows Aurumin, at its election, to satisfy up to 50% of drilling costs invoiced by Topdrill by the issue of ordinary shares from the company’s LR7.1 capacity, up to a maximum of $1 million.
Drilling in April
“We are pleased to have continuing support from Topdrill, a supportive Aurumin shareholder and one of the best drilling contractors in WA," Aurumin's managing director Brad Valiukas said.
"We look forward to having Topdrill on site and drilling at our flagship 946,000-ounce Sandstone Gold Operations in April.”
The issue price is determined by the 5-day volume weighted average price (VWAP) immediately preceding each invoice with shares to be escrowed for six months from the invoice date.
Strong cash position
“Following recent divestments and share placement, we are now debt-free with a strong cash position, having transformed the balance sheet,” Valiukas said.
"The drill for equity agreement gives us more flexibility, and we can use it, or not use it at our discretion, to either preserve our cash position or drill more metres.
“Aurumin is strongly focused on the Sandstone Gold Project and will look to generate the critical mass required for future production, starting with open pits.”