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Aurora Energy Metals (1AE) continues to defy market pressures on day two of trading, with shares up 30 per cent above its IPO issue price of 20 cents. 

Aurora raised $8 million dollars through its IPO and is exploring for uranium and lithium in south-eastern Oregon.

Executive director Greg Cochran told The Deal Room the project had been on his radar for decades.

He said there was a well-defined, shallow uranium resource with lakebed sediment-hosted lithium mineralisation around it.

“The McDermitt Caldera, which hosts our Aurora Energy Metals Project, is one of the most prospective lithium provinces in the USA,” he said.

“It is home to the two largest lithium resources in the USA and neighbouring peer companies have clearly demonstrated the region’s potential. 

“We are looking forward to undertaking our planned work programs and keeping our shareholders updated on our progress.”

1AE has opened with a market cap of about $37 million and shares were trading at 26 cents at 1:18 pm AEST.

Cavalier Resources (CVR) has launched its $7 million IPO as it moves towards listing on the ASX on June 10.

Cavalier has a portfolio of gold and nickel projects at various stages of development and executive technical director Daniel Tuffin said the company would be committed to a business model where there was minimal dilution for early shareholders. 

“Cavelier’s really exciting in that it’s got a self-funded business plan,” he said.

“By utilising the Crawford Gold Project to fund us into the future, it’ll allow us to explore and develop our full project packages: The Leonora Gold Project, Hidden Jewel Gold Project and Ella’s Rock (nickel and gold) without us ever having to go back to the market and do a capital raise.

“So we intend to really reward our IPO or pre-IPO investors.”

The Crawford Gold Project already hosts 101,000 ounces of gold.

The IPO raise is priced at 20 cents per share. 

Capital raising

Elanor Commercial Property Fund (ECF) has raised $36.6 million so it can buy almost half of the managed fund which is acquiring a commercial office in Pyrmont, Sydney.

The Harris Street Fund is buying 19 Harris Street for $185 million.

ECF raised $17.9 million through an institutional placement and has now closed the retail entitlement with $18.7 million raised with share at $1.04 each — half a cent above where they were trading at 1:17 pm AEST. 

Elanor Commercial Property Fund has office assets across Australia valued at more than half a billion dollars and its market cap is $311.5 million.

Magnetite Mines (MGT) has raised $15.8 million to continue work on the Definitive Feasibility Study for its flagship Razorback Iron Ore Project.

CEO Stephen Weir said the rights issue, which came with options, was designed to reward participants.

“The funds raised will cover critical work required to complete the DFS, ensuring future infrastructure requirements for expansion are factored into project design and the company is positioned for long-term success as a premium iron ore producer,” Mr Weir said.

Shares in the issue were priced at 2.5 cents, a 39 per cent discount to the previous closing price.

MGT has a market cap above $90 million and shares have been trading down 3.7 per cent in the wake of the capital raising at 2.6 cents as of 1:20 pm AEST.

The securing of a $125 million Goldman Sachs warehouse facility will be transformative for Payright (PYR), according to its co-CEO Myles Redward.

The company has found its buy now, pay later niche with $1000-plus point-of-sale loans. Mr Redward told The Deal Room the warehouse facility, combined with a now-completed $9.5 million capital raise, would be key to Payright reaching profitability.

He said it would lower the cost of funding by 50 per cent.

“This is really a transformational funding package for us that will really give us the ability to really turbo-charge that growth — and accelerate already good strong growth — but perhaps more importantly, or equally as importantly, really fast-track us on that path to profitability through the significantly reduced cost of funds that the bank warehouse facility will provide,” Mr Redward said.

“We have a book size now of around $100 million, we think to get to that profitable position it’s probably around $200 million and if you look at the growth we’ve seen within the book over the past 12 months — that loan book — the receivables is up 60 per cent year-on-year so from there you can start to get a sense of not just the path we’re on here, but the timeline between us and a profitable position.”

Payright has a market cap above $14 million and shares were trading up more than 25 per cent today at 19 cents as of 1:21 pm AEST — still a long way off its December 2020 IPO price of $1.20 per share.

Resolution Minerals (RML) has revealed the details of its capital raising. It’s secured $1.86 million through a placement with 1.2-cent shares to advance its 64North gold project in Alaska and Carrara Range project in the Northern Territory.

It’s also out to raise a further $820,000 through the sale of options.

It comes after the company announced a farm-in and joint venture agreement with OZ Minerals (OZM) over its Benmara copper project in the Northern Territory. 

RML’s market cap is just $9 million and shares last traded at 1.3 cents as of 1:22 pm AEST.

Navigator Global Investments (NGI) has raised over $3.87 million through a share purchase plan, a top up just weeks after the company raised $47 million through a placement to grab an almost 20 per cent stake in US real estate management company Marble Capital.

However, shares in the latest retail raise were 7 cents cheaper at $1.48.

Today, shares were trading at that same price as of 1:23 pm AEST.  The company’s market cap is $342.6 million.

In trading halts ahead of capital raising today are BikeExchange (BEX) and Invictus Energy (IVZ), with full details expected to be released early next week.

1AE by the numbers
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