Gold-focused Aurum Resources has announced plans to raise $10 million, as it aims to enhance its Mako Gold acquisition.
Gold-focused Aurum Resources has announced plans to raise $10 million, as it aims to enhance its Mako Gold acquisition.
In October, Caigen Wang-led Aurum told the market it had filed to documents to acquire Queensland-based Mako Gold – with Aurum shareholders owning 79.5 per cent of the merged entity.
Presently, the company has more than a 68.9 per cent stake in Mako. It will use proceeds from the capital raise to meet costs relating to the acquisition, a $4.8 million payment to Perseus Mining following the completion of the takeover, along with other feasibility and environmental requirements for its Boundiali gold project in Côte d'Ivoire.
Under the placement, Aurum said it would issue around 28.9 million new fully paid ordinary shares at an issue price of 35 cents per share.
This price represented a 12.6 per cent discount to the company’s final closing price prior to entering its trading halt, along with a 11.5 per cent discount to the five-day volume weighted average trading price.
Both Canaccord Genuity and Petra Capital were appointed as joint bookrunners and joint lead managers to the placement, while Sternship Advisers acted as a co-manager.
“Investors strongly supported our placement, validating our ongoing investment in the exciting opportunity presented in the company’s gold portfolio and our acquisition of Mako Gold to create an emerging West African exploration and development business with two exciting and advanced gold projects in Boundiali and Napié,” Mr Wang said.
“We are pleased with the ongoing participation of the Mako Gold shareholders to our takeover offer, we now sit at a relevant interest of more than 68.97 per cent.”
As of 12.16pm WST, Aurum shares were down 12 per cent to 35.3 cents.
