21st Aug 2014 08:47
LONDON (Alliance News) - Aurum Mining PLC saw its shares drop heavily on Thursday after the company said it would launch a discounted share placing to raise GBP60,000.
Aurum, the Spain-focused gold and tungsten explorer, said it would place 4.8 million shares at a price of 1.25 pence per share, lower than its closing price of 1.375 pence per share on August 20, though ahead of its share price in early trading Thursday after it fell 22.7% to 1.0625 pence, making the stock the biggest faller on AIM.
The firm said the new financing would be used to fund working capital requirements and back its strategic shift.
In its full-year results, posted on Monday, the firm said it was holding discussions about structuring a deal for its interest and participation in the gold projects its operates through a joint venture with Ormonde Mining PLC, a number of discussions of which it said are on-going.
Through its joint venture agreement with Ormonde, Aurum currently has a 60% interest in the Pino de Oro project in Zamora Province, and a 54% interest in the Peralonso and Cabeza projects in Salamanca Province.
By Sam Unsted; [email protected]; @SamUAtAlliance
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