Aurumin (ASX:AUN) has secured firm commitments to raise $2.5 million via a placement, which will be applied towards advancing its Sandstone Gold Operations in Western Australia.
Boutique Melbourne firm Peak Asset Management acted as lead manager to the placement, which comprised the issue of 78 million shares at an issue price of $0.032 per share.
The issue price represents a 20% discount to the last traded price and 13.7% to the 10-day volume weighted average price (VWAP).
Aurumin, which has a market capitalisation of $14.73 million, says following the redemption of the outstanding balance of the convertible note, and placement commitments, the company is now debt-free and fully funded for all planned exploration for CY2024.
Managing Director Brad Valiukas says: “We look forward to getting out and drilling at our flagship 946,000 ounce Sandstone Gold Operations ASAP.
Following recent divestments Aurumin is strongly focussed on the Sandstone Project and will look to generate the critical mass required for future production starting with open pits.”
The company is planning drilling activities for Sandstone during April 2024.
Included in the $2.5 million, directors and management have committed to participate with a collective $396,000, subject to shareholder approval.
The Sandstone operations include the Central Sandstone, Johnsons Range, and Birrigrin projects in Western Australia.
Aurumin is a Western Australian-focused explorer and developer that is currently advancing its 2 gold assets.
Write to Aaliyah Rogan at Mining.com.au
Images: Aurumin
