- Auroch Minerals (AOU) receives firm commitments for an $8 million share placement
- The company will issue 50 million shares to investors at 16 cents each
- Proceeds from the oversubscribed placement will help fund Auroch’s nickel exploration in Western Australian and zinc and copper exploration in South Australia
- Diamond drilling at Nepean Deeps target is ongoing, with the second drill hole targeting the uppermost down-hole electromagnetic conductor
- Shares in Auroch Minerals were down 10.5 per cent on Thursday, October 28, closing at 17 cents
Auroch Minerals (AOU) has received firm commitments to raise $8 million via a share placement.
The financing will see the company issue 50 million new fully paid ordinary shares to new and existing institutional and sophisticated investors at 16 cents each.
This issue price represents a 15.8 per cent discount to Auroch’s last trading price on October 25, and an 11.6 per cent discount to its 10-day volume-weighted average price.
The proceeds, together with Auroch’s existing cash reserves, will fund exploration programs across its nickel sulphide portfolio in Western Australia.
The funds will also go towards zinc and copper exploration in South Australia and general working capital.
Specifically, Auroch said current and upcoming programs included diamond drilling to target electromagnetic conductors at the Nepean Deeps prospect. This work will explore for possible extensions to known nickel-sulphide mineralisation below the historical Nepean mine workings.
Other initiatives include diamond drilling of the Ragless Range zinc target at the Arden Project in South Australia, as well as internal scoping studies at the Saints and Nepean Nickel projects to evaluate development and production possibilities.
Auroch Minerals’ Managing Director Aidan Platel said the oversubscribed placement was a testament to the quality of the company’s assets.
“The funds will be used to continue our aggressive exploration programs across Auroch’s quality portfolio of Australian base metal projects over the next 12 months, in particular our Western Australian nickel sulphide assets,” he said.
“We’d like to thank our existing shareholders for their support and we welcome any new shareholders to the company’s share register.”
Net proceeds from the placement are projected to increase the company’s cash reserves to around $10 million, with a further $1.1 million to be received, before costs, from underwritten 10-cent options that expire on November 30.
Shares in Auroch Minerals were down 10.5 per cent on Thursday, October 28, closing at 17 cents.