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ORE RESOURCES LIMITED — Capital/Financing Update 2020
Jun 3, 2020
65504_rns_2020-06-03_7f3e17c5-56b1-4f85-9383-10d2902d964f.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT (ASX:AOU) 4 June 2020
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AUROCH RECEIVES FIRM COMMITMENTS FOR $2M OVERSUBSCRIBED PLACEMENT TO ADVANCE HIGH-GRADE NICKEL SULPHIDE PROJECTS
Highlights
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Auroch receives firm commitments for placement to raise $2 million (before costs)
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Proceeds will be used to fast-track systematic drill-testing of high-priority nickel sulphide targets at the Company’s Saints and Leister Nickel Projects located in Western Australia
Auroch Minerals Limited ( ASX:AOU ) ( Auroch or the Company ) is pleased to announce it has received firm commitments from professional and sophisticated investors for a placement to raise approximately $2,000,000 (before costs) ( Placement ) through the issue of 36,363,637 fully paid ordinary shares at $0.055 per share ( Placement Shares ).
The Placement Shares will attract a 1 for 2 free attaching option, each with an exercise price of $0.10 and expiry date of 30 November 2021 ( Placement Options ), totalling 18,181,818 Options.
Auroch Managing Director Aidan Platel commented :
“ We are extremely pleased to have completed the heavily oversubscribed placement. The high level of interest from both existing and new shareholders is a testament to the high quality of the Company’s Saints and Leister Nickel Projects and the enormous potential to unlock further value through discoveries. We look forward to aggressively developing and drill-testing the pipeline of nickel sulphide targets that our team has identified, with the intention of creating value for our shareholders.”
Proceeds from the Placement will be used by Auroch to fund exploration programmes, in particularly drilling, for high-grade nickel sulphide mineralisation at the Saints and Leister Nickel Projects, and for general working capital purposes. The projects contain existing high-grade nickel sulphide resources[1] as well as multiple advanced drill-ready targets providing strong potential to increase the resources with drilling programmes funded by the Placement.
Veritas Securities Limited and Merchant Capital Partners Pty Ltd have acted as Joint Lead Managers to the Placement and will receive a fee of 6% of all funds raised under the Placement and 3,000,000 options, each exercisable at $0.10 and expiring on 30 November 2021, for providing these services ( Broker Options ).
1 Saints Nickel Project contains JORC (2012) Inferred Resources of 21.4kt of contained Ni at 2.0% (1.0% Ni cut-off); Leinster Nickel Project contains a historic JORC(2004) Inferred Resource. Refer to ASX Announcement - AUROCH TO ACQUIRE HIGH-GRADE WESTERN AUSTRALIAN NICKEL PROJECTS https://www.asx.com.au/asxpdf/20190528/pdf/445dz31g15d0kx.pdf for further information in regard to the Mineral Resources and details of the ' Competent Person s Statements and consents. The Company is not aware of any new information or data that materially affects the information included in the above ASX announcement, and the Company confirms that all material assumptions and technical parameters underpinning the Mineral Resources in the above ASX announcement continue to apply and have not materially changed.
*Cautionary Statement: The estimates of a Mineral Resource for the Leinster Nickel Project are historical estimates under JORC Code 2004 and are not reported in accordance with the JORC Code 2012. A Competent Person (as defined in the JORC Code 2012) has not done sufficient work to classify this Mineral Resource in accordance with JORC Code 2012. It is uncertain that following evaluation and/or further exploration work that the historical estimates will be able to be reported as Mineral Resources in accordance with the JORC Code 2012.
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FOLLOW US
Auroch Minerals Ltd ABN 91 148 966 545 Suite 1, 295 Rokeby Rd, Subiaco WA 6008 Phone: +61 8 6555 2950 Fax: +61 8 6166 0261 Email: [email protected] www.aurochminerals.com
ASX ANNOUNCEMENT (ASX:AOU) 4 June 2020
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Issue of the Placement Shares, Placement Options and Broker Options is expected to occur in the following manner:
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Placement Shares : The Company will issue 22,500,000 of the Placement Shares using its 15% placement capacity under ASX Listing Rule 7.1 and 13,863,637 of the Placement Shares using its additional 10% placement capacity under ASX Listing Rule 7.1A on or about Wednesday, 10 June 2020.
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Options : The Company will issue the balance of the securities under the Placement, comprising of 18,181,818 free attaching Placement Options and 3,000,000 Broker Options each exercisable at $0.10 on or before 30 November 2021, subject to shareholder approval which will be sought at a shareholder meeting to be held in July 2020.
The issue price of $0.055 per Placement Share under the Placement is an 8% discount to the 15-day VWAP of the trading price of the Company's shares prior to the stock being placed in a Trading Halt on 2 June 2020.
This announcement has been authorised by the Board of Directors of Auroch.
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For further information contact: Aidan Platel Managing Director E: [email protected]
Forward-Looking Statements
This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Auroch Minerals Limited’s planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may”, "potential", "should," and similar expressions are forward-looking statements. Although Auroch Minerals Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.
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FOLLOW US
Auroch Minerals Ltd ABN 91 148 966 545 Suite 1, 295 Rokeby Rd, Subiaco WA 6008 Phone: +61 8 6555 2950 Fax: +61 8 6166 0261 Email: [email protected] www.aurochminerals.com
ASX ANNOUNCEMENT
(ASX:AOU)
4 June 2020
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Location of the Leinster and the Saints Nickel Projects, Western Australia
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Surface geology map of the Saints Nickel Project highlighting the basal footwall contact and channels in relation to the known nickel sulphide mineralisation (dark red) and ultramafic units (purple).
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FOLLOW US
Auroch Minerals Ltd ABN 91 148 966 545 Suite 1, 295 Rokeby Rd, Subiaco WA 6008 Phone: +61 8 6555 2950 Fax: +61 8 6166 0261 Email: [email protected] www.aurochminerals.com