9 August 2016
NZX Market Announcement
Aorere Resources Limited: Rights Issue
Aorere Resources Limited (NZX: AOR) advises that it intends to make a rights issue offer (Offer) to all AOR shareholders. The Offer price will be $0.0009 (0.09 cents) per share, to raise up to $685,000 (approx.) in aggregate.
The pricing of the Offer is at a significant discount to recent AOR share trades which have ranged between 0.2 and 0.4 cents since the AOR private placement fundraising programme of .09 cents commenced. The volume weighted average trading price during this fundraising period has been .224 cents, despite the fundraising at .09 cents, likely indicating strong investor support for the Company’s Nevada Gold strategy. The Offer gives all shareholders the same opportunity (at a 59.8 discount to recent trading prices) to support Aorere’s Nevada Gold project.
Shareholders recorded on the register as at the record date will receive renounceable rights to one new share for every existing share held. The rights will not be quoted on market.
Existing shareholder and retail investors may also apply for new shares subject to shortfall availability.
AOR intends to use the proceeds from the Offer, along with the capital raised from the recent placements, to finance costs in relation to the proposed acquisition of American Innovative Minerals LLC (AIM) through its wholly owned subsidiary Nevada Gold Limited (NGL) (including the compliance costs associated with the listing of NGL on the Toronto Stock exchange through a listed shell company).
The timetable for the Offer will be confirmed and advised to the market next week. It is intended that the Offer will be completed by the end of September.
On behalf of the Board,