Aurumin Limited (ASX: AUN) (“Aurumin” or the “Company”) is pleased to announce it has refreshed its drill for equity agreement with Topdrill Pty Ltd (Topdrill). The drill for equity agreement allows Aurumin flexibility to increase drilling and preserve cash.
The agreement allows Aurumin, at Aurumin’s election, to satisfy up to 50% of drilling costs invoiced by Topdrill by the issue of ordinary AUN shares from its LR7.1 capacity, up to a maximum of $1,000,000. The issue price is to be determined by the 5-day volume weighted average price (VWAP) immediately preceding each invoice and shares are to be escrowed for 6 months from the invoice date. The Agreement expires 30 September 2024.
Aurumin's Managing Director, Brad Valiukas, commented: “We are pleased to have continuing support from Topdrill, a supportive Aurumin shareholder and one of the best drilling contractors in WA. We look forward to having Topdrill on site and drilling at our flagship 946koz Sandstone Gold Operations in April.
“Following recent divestments and share placement, we are now debt free with a strong cash position, having transformed the balance sheet. The drill for equity agreement gives us more flexibility, and we can use it, or not use it at our discretion, to either preserve our cash position or drill more metres.
“Aurumin is strongly focussed on the Sandstone Gold Project and will look to generate the critical mass required for future production, starting with open pits.”
About us:
Aurumin Limited is an ASX-listed mineral exploration Company focused on two project areas in Western Australia. The Sandstone Gold Operations were cornerstone by the acquisition of the Central Sandstone Gold Project by the Company in early 2022.
Contact details:
Jane Morgan