Aorere Resources Limited (NZX: AOR) is intending to raise further capital from qualified investors by way of placing approximately $150,000 of new shares (New Shares) at $0.0009 (0.09 cents) per share.
AOR intends to use the proceeds to finance ongoing costs in relation to the proposed partial acquisition of American Innovative Minerals LLC (AIM) through its wholly owned subsidiary Nevada Gold Limited (NGL).
Extended Exclusivity Period
As first announced to market on 16 May 2016, AOR signed a conditional term sheet securing the exclusive right to purchase AIM for the agreed purchase price of $2 million. The parties subsequently agreed to extend the exclusivity arrangements first to 31 October 2016, then to 30 November 2016, and most recently to 30 January 2017. During the extension periods Aorere has carried out due diligence, completed metallurgy studies, updated the independent resource report and identified a third party to fund the acquisition.
The third party is well advanced in its own due diligence process and assuming that this results in a transaction Aorere’s investment to date in this project will translate into a significant (to Aorere) indirect interest in AIM. It is expected that Aorere will have a management role and will also have board representation.
Three-fold increase in gold resource estimate
This week Aorere Resources announced that the proposed Nevada gold investment is showing three times the gold resources previously estimated, following updated resource modelling.
In this week’s filing to NZX Aorere announced that:
- Updated resource modelling, incorporating diamond drilling at depth, has increased the JORC 2012 compliant Mineral Resources to 1,069,000 ounces of gold historical resources from 320,000 ounces in the previous, NI 43-101 compliant technical report.
- Mineralization is contained in steeply dipping quartz-sulphide shears from surface.
- Multiple targets have been identified along extensions and potential new shears show scope for increasing the resources significantly.
- Aorere has extended its right to purchase the Fondaway Canyon Gold Project and ten other exploration assets in the AIM package until 30 January 2017.
How to invest
Eligible investors wishing to invest will be sent an application form on request.
021 558 185