Aruma Raises $3.515M at $0.009 to Fund Key Drilling and Sampling Programs
Aruma Resources has locked in $3.515 million through a placement to fund targeted exploration across its copper, heavy mineral sands, and uranium projects in Australia. The capital raise, supported by directors and new investors, aims to advance drilling and sampling programs at key sites.
- Placement raises $3.515 million at $0.009 per share with free attaching options
- Funds to support exploration at Fiery Creek, Saltwater, Wilan, and Bortala projects
- Directors participate with $115,000 subscription subject to shareholder approval
- Placement completed in two tranches, second tranche conditional on shareholder vote
- Oakley Capital Partners leads placement with 6% fee and option incentives
Capital Raise to Fuel Exploration Momentum
Aruma Resources Limited (ASX – AAJ) has announced firm commitments for a $3.515 million placement priced at $0.009 per share, accompanied by free attaching options exercisable at $0.018 over three years. This capital injection is designed to underpin a series of targeted exploration programs across the company’s portfolio of copper, heavy mineral sands (HMS), and uranium projects in Queensland, Western Australia, and South Australia.
The placement has attracted strong support from sophisticated and professional investors, including participation from chairman James Moses and non-executive director Brett Smith, who have collectively committed $115,000. The raise will be executed in two tranches, with the second tranche and all attaching options subject to shareholder approval at an upcoming general meeting.
Focused Exploration Across Multiple Fronts
Proceeds from the placement will primarily fund exploration activities at several key projects. At the Fiery Creek Copper Project in the Mt Isa region of Queensland, recent maiden drilling returned high-grade copper results, prompting plans for further target refinement through reprocessing geophysical data and 3D geological modelling ahead of follow-up drilling.
In Western Australia’s Pilbara region, Aruma intends to conduct infill soil sampling at the Tunnel Creek area within the Saltwater Project to better define anomalies before a maiden reverse circulation drilling campaign. Meanwhile, the Wilan Project in South Australia will see systematic ground sampling focused on delineating HMS anomalies, targeting valuable minerals such as zircon and ilmenite.
Additionally, the Bortala Copper Project, also in the Mt Isa district, will undergo initial fieldwork aimed at identifying priority drill targets. Beyond these activities, the company plans to assess new project opportunities and maintain general working capital.
Strategic Implications and Market Reception
The placement price represents a 23.7% discount to the recent 15-day volume weighted average price, reflecting a strategic approach to attract new investors and strengthen the company’s balance sheet. Oakley Capital Partners acted as sole lead manager, earning a 6% cash fee and potential options, aligning their interests with Aruma’s growth trajectory.
With exploration programs expected to generate ongoing news flow, Aruma is positioning itself to capitalize on recent positive drilling results and the broader market demand for copper and critical minerals. The company’s diversified project portfolio, spanning copper, uranium, and heavy mineral sands, offers multiple avenues for value creation as these programs advance.
Bottom Line?
Aruma’s successful raise sets the stage for a pivotal exploration phase, but shareholder approval and drilling outcomes will be key to unlocking value.
Questions in the middle?
- Will shareholders approve the second tranche and the free attaching options at the upcoming meeting?
- How will the upcoming drilling results at Fiery Creek and Saltwater influence Aruma’s valuation?
- What new project opportunities might Aruma pursue with the additional capital?
