Aurum’s A$35.6M Placement: Can It Deliver on Ambitious Côte d’Ivoire Plans?

Strategic Capital Injection

Aurum Resources Limited (ASX – AUE) has successfully completed a A$35.6 million private placement, issuing 100 million new shares at 35.6 cents each. This capital raise, approved by shareholders earlier this month, includes a combination of cash proceeds totalling A$23.89 million and the issuance of approximately 2.9 million shares in TSX-listed Montage Gold Corp. The placement attracted significant strategic investors, notably the Lundin family and Zhaojin Capital Limited, who now hold substantial stakes in Aurum.

Backing from Strategic Investors

The Lundin family and associates invested A$11.71 million, securing a near 10% interest post-placement, while Zhaojin Capital increased its holding to 8.5%. Montage Gold’s share issuance translates to a similar 9.9% stake in Aurum. This constellation of respected investors signals strong confidence in Aurum’s exploration assets and development strategy in Côte d’Ivoire.

Accelerating Project Development

With the new funds, Aurum’s cash position exceeds A$45 million, including the value of Montage shares. Managing Director Dr. Caigen Wang highlighted that this financial boost will enable the company to fast-track resource definition drilling at its flagship Boundiali Gold Project, which holds 1.6 million ounces of gold, and the recently acquired 0.87 million ounce Napié Gold Project. The company plans to expand its diamond drilling fleet from eight to ten rigs to support this accelerated exploration.

Key milestones targeted with this funding include completing a Pre-Feasibility Study (PFS) for Boundiali by the end of 2025, followed by a Definitive Feasibility Study (DFS) in the second half of 2026. Aurum also aims to secure environmental and social impact approvals and progress mining exploitation licence applications, critical steps toward commercial production.

Robust Resource Base and Strategic Location

Aurum’s projects are strategically located in Côte d’Ivoire’s prolific gold belt, near established mines such as Resolute’s Syama and Barrick’s Tongon. The combined resource base of 2.47 million ounces across Boundiali and Napié positions Aurum as a significant player in the region. The company’s operational control of its diamond drilling rigs allows for efficient and cost-effective exploration, potentially accelerating resource growth beyond current estimates.

Outlook and Market Implications

This capital raise and strategic investor support mark a pivotal moment for Aurum Resources, underpinning its transition from exploration to development. The company’s ability to deliver on its feasibility studies and secure regulatory approvals will be closely watched by the market, as these milestones will shape the path toward production and value realisation.