Aruma Resources to raise $2.5M to fund WA gold exploration

THE BOURSE WHISPERER: Western Australia-focused gold explorer Aruma Resources (ASX: AAJ) has agreed to raise up to approximately $2.5 million by way of a placement of up to 50 million shares at a price of 5 cents per share.

The Placement is being made to professional and sophisticated investor clients of BBY Limited, which is acting as Lead Manager to the offer.

Aruma said it had already received very strong support for the Placement from existing shareholders as well as a number of new professional and sophisticated investors.

“The funds raised will be used for targeted gold exploration programs on the company’s existing projects, Glandore, Gindalbie and Jundee South, located in the Kalgoorlie goldfields in Western Australia as well as costs of the issue and general working capital,” Aruma Resources said in iits ASX announcement.

The Placement comprises:

Tranche 1: being approx. 19.67 million shares to raise around $983,000. Settlement of these shares is scheduled for 8 March 2013;

Tranche 2: for approx. 25.04 million shares to investors unrelated to the company to raise around $1,252,000 subject to shareholders approving the issue of those shares at a general meeting of the company to be held in April 2013; and

Tranche 2: for approx. 5.3 million shares to raise around $265,000 to entities associated with Aruma’s directors, subject to shareholder approval at the general meeting to be held in April 2013.

Shares issued under the Placement will rank equally with existing Aruma shares.