9 July 2016
NZX Market Announcement
Intention to make Private Placements
Aorere Resources Limited (NZX: AOR) is intending to raise capital from qualified investors by way of placing approximately $126,000 of new shares (New Shares) at $0.0009 (0.09 cents) per share.
AOR intends to use the proceeds to finance costs in relation to the proposed acquisition of American Innovative Minerals LLC (AIM) through its wholly owned subsidiary Nevada Gold Limited (NGL). In particular, AOR has been closely investigating the listing of NGL on the Toronto Stock Exchange (TSX) to help finance the AIM acquisition and ongoing working capital requirements.
As first announced to market on 16 May 2016, AOR secured the exclusive right to purchase AIM which holds multiple exploration projects in resource-rich Nevada, including the flagship Fondaway Canyon Gold Project. AOR has been exploring a number of strategies to finance the acquisition of AIM and its initial working capital requirements.
Following two months testing of the investment market, AOR considers the best way to fund and develop the AIM project is to provide a listed company vehicle on a recognised stock market. A listing on TSX will provide further avenues of financing, with the TSX being a leading exchange for mining stocks, and exit opportunities for investors. Accordingly, AOR will use the raised capital to cover the compliance costs associated with the listing of NGL on TSX through a listed shell company (the TSX Listing).
Following the TSX Listing, NGL will move immediately to secure a financing to acquire AIM and proceed with the development of the project.
Extended Exclusivity Period
As 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 have agreed to extend the exclusivity arrangements to 31 October 2016. This will provide NGL with additional time to carry out due diligence, secure finance to fund the acquisition and finalise a sale and purchase agreement with the vendors.
On behalf of the Board,