Australian explorer Aruma Resources (ASX:AAJ) has received firm commitments to raise $2.25 million in a placement to accelerate fieldwork across its multi-element project portfolio in Western Australia.
The company reports the placement will fund a mapping and sampling program at the Saltwater Rare Earth Elements (REE) Project, as well as the next phase of drilling and metallurgical testwork at the Mt Deans Lithium Project and further drilling at the Salmon Gums Gold Project.
At Saltwater, the company plans to complete systematic mapping and sampling across an interpreted 80km strike. This program is designed to provide targets for a maiden drilling program.
Aruma reports it has identified up to 15m-thick pegmatites at Mt Deans, and drilling campaigns have confirmed the presence of lithium-rich pegmatites. Additionally, recently completed first-phase metallurgy has confirmed the ability to produce a lithium concentrate, while further drilling and metallurgy are planned as the next steps in the company’s systematic exploration and appraisal of the project.
The company reports Salmon Gums is situated 30km along strike and in the same stratigraphy as Pantoro’s (ASX:PNR) ‘high-grade’ Scotia Gold Project. Aruma says it has conducted multiple drilling programs at the project that have returned ‘bonanza’ gold grades, and further targeted drilling is planned to extend the ‘high-grade’ mineralised zone.
The placement was ‘strongly bid’, which the company says is a testament to its focus on core REE, lithium, and gold projects in Western Australia. This placement also saw several investors join Aruma’s share registry for the first time.
Aruma reports that once the placement is complete, it will have a ‘strong’ balance sheet, with a cash balance of about $3.7 million to undertake its work programs.
Aruma reports that once the placement is complete, it will have a ‘strong’ balance sheet, with a cash balance of about $3.7 million to undertake its work programs
Under the placement, Aruma will issue more than 38.79 million shares at $0.058 per share. This represents a 16.2% discount to the company’s 10-day volume weighted average price (VWAP) up to the date of the placement announcement.
The company also advises that Chairman James Moses and Director Peter Schwann participated in the placement and have subscribed for a total of over 1.439 million shares, subject to shareholder approval.
The offer also includes a free attaching option for every share subscribed for in the placement, exercisable at $0.10 up to 11 June 2026. Aruma notes the options and director shares remain subject to ASX listing requirements and shareholder approval.
GBA Capital acted as lead manager to the placement and will be paid a 6% commission on funds. Subject to shareholder approval, GBA will receive 15 million options exercisable on the same terms as the placement. Aruma reports it will convene a shareholder meeting in the coming weeks to seek shareholder approval.
New shares under the placement are expected to be issued on 13 June 2023. This does not include the shares subscribed for by the company’s directors.
Aruma Resources is an ASX-listed mineral exploration company focused on its portfolio of prospective gold and lithium projects in Western Australia. These projects include the Mt Deans Lithium, Salmon Gums Gold, and Saltwater projects.
Write to Harry Mulholland at Mining.com.au
Images: Aruma Resources Ltd
