Aurum Resources (ASX:AUE) has received firm commitments to raise $715,000 via a placement of some 6.5 million fully paid ordinary shares.
The company says the equity raise received strong support and commitment from the company’s existing major shareholders.
The placement will be undertaken at $0.11 per share in a single tranche.
Xcel Capital is acting as lead manager to the placement. The funds raised will be used to facilitate the continued exploration of the asset portfolio, review new exploration opportunities, and to augment working capital.
Meanwhile, Aurum reports that drilling has commenced at its flagship Ryans Find Project. A total of 74 aircore holes are to be drilled by Wallis Drilling with a Mantis 200AC for the 3,500m.
The program is expected to take 2-3 week to complete. Sample composites of 4m intervals, subject to lithological boundaries, will be assayed for gold and 1m weathered basement intersections may be tested for base metals.
Aurum reports the placement of the 74 holes is based on the profile soil sampling for base metals and gold over the north-north-westerly striking greenstones, where the gold sampling results appear not to have been followed up.
Several above background low level gold assays were returned in the data and probably reflect specific basement lithological units apparent in the aeromagnetic dataset. Profile aircore drilling is planned over these anomalous sections with some 74 holes for 3,500m planned.
The company says the drilling will focus on the contiguous magnetic unit associated with elevated gold in soils. The local geological strike is apparent in the airborne magnetics and local gossans trends north-north-westerly, and the planned drilling is perpendicular to the geological strike. The holes planned will have azimuths of 225 degrees and dips -60 degrees.
Aurum has a collection of gold and base metal focused projects from early stage reconnaissance to mature area exploration projects currently located in Western Australia. The company’s flagship project is the Ryans Find Project, ‘highly prospective’ for gold mineralisation and located on structures that host historical gold mines.
Write to Adam Orlando at Mining.com.au
Images: Aurum Resources