AUN - Aurumin Limited

[System]

Aurumin Limited was incorporated on 28 February 2020 in Western Australia as a gold exploration company. The Company was established to consolidate and progress gold exploration projects in the Southern Cross and Kalgoorlie regions. Since incorporation, the Company has acquired four gold projects with two having a history of previously high-grade gold production, including the Mt Dimer Project and the Mt Palmer Project:

• Mt Dimer - Open pit and underground production of approximately 123,000 ounces of gold from 600,000 tonnes @ 6.4 g/t and a substantial tenure footprint.
• Mt Palmer - Historical open pit and underground production for approximately 158,000 ounces of gold at an average grade of 15.9 g/t.

The purpose of the IPO Offer is to raise up to A$7,000,000 (before associated costs) by the issue of up to 35,000,000 Shares at an issue price of A$0.20 each.

It is anticipated that AUN will list on the ASX on 30 November 2020.

Aurumin Limited • ASX: AUN

Australian high-grade gold company with advanced projects.

aurumin.com.au

 

[Dona Ferentes]

Made it to the boards today, a few days late. I guess when there is no underwriting, that's what happens.

Happy punters, with $7million raised at 20c, and the opening was strong, held on during the day to close at 30c

 

[finicky]

Up around 40%, currently 0.235 on a high grade drilling announcement. AUN a Locantro pick, he is primarily backing the management to find something in familiar terrain as have ex Northern Star associations, e.g
Brad Valiukas was manager technical services at NST.

Not Held

Daily

 

[The Triangle]

Looks like AUN buying out the 22mt x 1.1g/t sandstone deposits for $6 million cash and $6 million in shares from MDI. A placement at 20 cents, and some convertible bonds will be issued to pay for it all... MDI should have just been merged with AUN...but we don't want to put hard working directors out of jobs do we?

Thought I had posted here before, but must have forgot... These guys have not exactly done much since their IPO and if I recall their IPO was a 'Bill Beaumont' related IPO. Company was down to $2 million cash. I think the started with 6 or 7 million.

This looks textbook to me... Acquire some junk to justify a capital raising... Nothing there to excite me. Even if they had a mill next door those tonnes and grades are just not good enough. I believe the strip ratios were 5.9:1.

 

[Dona Ferentes]

sandstone? SANDSTONE !

oh, I see, that is the name of the gold prospect

 

[The Triangle]

sandstone? SANDSTONE !

oh, I see, that is the name of the gold prospect

Actual sandstone might be a better investment?

Headline of 90g/t released today.... yeah a coincidence the day after a raising announced.... All the highlighted intervals are 1m - did they skip 3m samples that most in the business do first? or did they get 3m, then sit on the results and wait for the 1m to come back at higher grade (as one would expect) to boost the headline?

suppose I could be less nasty, they are not really diluting as they are raising at the IPO price, so not that bad - but I do not like juniors taking convertible notes. AUN have 30 months to pay back $6.4 million on a $5 million note (before costs) and as a condition of the note must keep 1.5 million in reserves - and have security over their assets.

 

[Sean K]

This is a good heading, but they're cheating a bit by drilling straight down the pipe.

 

[noirua]

Aurumin (ASX:AUN) progresses soil sampling within Greater Sandstone, WA

Aurumin (ASX:AUN) is progressing a mapping and ultrafine soil sampling program at its Greater Sandstone project in Western Australia.

themarketherald.com.au

Aurumin (AUN) is progressing a mapping and ultrafine soil sampling program at its Greater Sandstone project in Western Australia.

The program is aimed at assessing the potential of granted tenements and tenement applications within the Greater Sandstone project. The samples collected will be used for mapping and interpretation and to potentially generate targets.

 

[The Triangle]

AUN released a revised ore reserve/resource this week. I'm not sure there are many small miners producing from underground mines at 1.7g/t - westgold which is not exactly swimming in profits is around the low 3s g/t (based on last quarterly) and noted they closed a mine which was mining mid 2g/t. So where does AUN get off calling 1.7g/t a resource with a 0.73g/t cutoff? These things just turn me off from potentially investing (Although I thought there was some chance of a small pit pushback as Troy resources (which had this deposit years ago) was thinking about it from memory when gold was $1200 USD)

Cash balances are now at $2.1 million and they are already loaded up with debt despite being a junior explorer which has only been listed for barely 2 years. (Note it looked like they had a typo in their quarterly report and reversed the negative on financing cashflows...) Not a good market for gold juniors right now so I expect this one to be dormant for quite some time. In fairness they do keep their overhead/corporate costs quite low.