Auroch Minerals reels in $2.9 million in strongly oversubscribed placement

Auroch Minerals Ltd (ASX:AOU) has received firm commitments from professional and sophisticated investors in a heavily oversubscribed placement which will raise around $2.9 million. Proceeds will be used to fast-track systematic drill-testing of high-priority nickel sulphide targets at the company’s Saints and Leinster nickel projects in Western Australia. "Show of support" Auroch managing director Aidan Platel said: “The heavily oversubscribed placement was a fantastic show of support from professional, sophisticated and other investors, and a great indication that Auroch has the right team and high-quality nickel sulphide assets to create significant value for our shareholders. “We’d like to thank existing shareholders for their continued support and we welcome our new investors to the register.” There will be 42.64 million new ordinary shares issued at 6.8 cents each, a 12% discount to the 15-day volume-weighted average price before the stock went into a trading halt on September 22, 2020. Aggressive exploration Platel said: “The funds will enable the company to continue its aggressive exploration program at our Saints and Leister nickel projects. “The intention is to upgrade the existing high-grade nickel sulphide mineral resource estimate of 1.05 million tonnes at 2.0% nickel for 21,400 tonnes of contained nickel metal.” In particular, proceeds will fund drilling further high-grade nickel sulphide mineralisation at the projects as well as general working capital purposes. Reverse circulation (RC) drilling is underway at the Firefly and Sinclair North prospects, part of the Leinster Nickel Project, and drilling of T1 at Saints will start next week. At Valdez prospect a drilling program was recently completed with assays pending and down-hole electromagnetic (DHEM) surveys will take place next week. Other company programs include: Horn prospect – RC and diamond drill program to upgrade historic resource to JORC 2012 status, commencing early October; Saints Nickel Project – T4 & T6 air-core drill program, commencing late October; and Saints Nickel Project – infill resource drilling to upgrade existing high-grade mineral resource estimate of 1.05 million tonnes as 2.0% nickel and 0.2% copper. Placement details Out of the 42.64 million shares to be issued around 24.29 million will be issued using the company’s 15% placement capacity while another 18.35 million will be issued using the additional 10% placement capacity. Auroch plans to issue these new shares on or about Friday, October 2, 2020. Canaccord Genuity Limited has acted as lead manager to the placement and will receive a fee of 6% of all funds raised under the placement.