LONDON (Alliance News) - Aurum Mining PLC Friday said it has raised GBP100,000 through a convertible loan, half of which has been provided by the company's chairman, and said there has been "no significant change" to trading during the second half of the last financial year.
Aurum shares were trading up 16% to 1.10 pence per share on Friday morning.
Aurum has raised GBP100,000 through an unsecured convertible loan that carries no interest. Importantly, Aurum is not required to pay back the loan and will automatically convert the loan into new shares when it next issues equity.
Each share that is issued will also be issued an accompanying warrant which will have an exercise price of 2.0 pence.
Chairman David Williams is providing GBP50,000 of the finance and currently holds a 29.14% stake in the business, prior to acquiring the shares and warrants that will eventually follow as part of the finance secured Friday.
"There was no significant change in the company's trading in the second half of the year ended March 31, 2016. Results for the year are expected to be announced in the second half of August," said the company.
Aurum is an AIM-listed exploration and development company focused on gold and tungsten assets in Spain.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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