Aurum Resources (ASX:AUE) received firm commitments to raise AU$35.6 million via a private placement of 100 million ordinary shares at AU$0.356 apiece, according to a Wednesday filing with the Australian bourse.
The target amount comprises AU$23.9 million in cash and AU$11.7 million worth of shares in Toronto Stock Exchange-listed Montage Gold Corp.
The Lundin family and associates invested AU$11.7 million in cash, giving them a 9.9% stake in all AUE shares on issue post-placement, per the filing.
Zhaojin Capital, a wholly owned subsidiary of Hong Kong-listed Zhaojin Mining Industry Company, invested nearly AU$8.2 million, equivalent to an 8.5% stake. Montage Gold will own 9.9% of all Aurum shares after the placement.
The capital raise is subject to shareholders' approval.
The issue price is equal to Aurum's five-day volume-weighted average price from April 28 to May 2, the filing stated.
Proceeds will be used to support the mineral explorer's Boundiali and Napie gold projects in Ivory Coast.
Aurum's shares jumped 15% in recent trade.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.