Aurum Nets 102% Gain, Boosts Cash to $40M Ahead of Key Gold Project Updates
Aurum Resources has sold nearly 2.9 million Montage Gold shares for about A$23 million, doubling its initial investment and boosting its cash reserves to around A$40 million. This financial boost supports ongoing exploration and development at its key Côte d'Ivoire gold projects.
- Sale of 2.89 million Montage Gold shares at C$7.30 each
- Realised 102% gain on initial investment price
- Cash balance increased to approximately A$40 million
- Advancing Boundiali and Napié gold projects with resource updates and Pre-Feasibility Study underway
- Aurum holds 3.28Moz gold resources across Côte d'Ivoire projects
Strategic Share Sale Boosts Aurum's Financial Position
Aurum Resources Limited (ASX – AUE) has successfully completed the sale of 2,887,496 ordinary shares in Montage Gold (TSX – MAU) at an average price of C$7.30 per share, generating gross proceeds of approximately C$21.08 million (around A$22.98 million). This transaction represents a remarkable 102% gain on the shares originally issued to Aurum at C$3.61 each earlier this year as part of Montage’s strategic investment.
The sale significantly strengthens Aurum’s cash position, lifting its balance to an estimated A$40 million. This enhanced liquidity provides Aurum with a solid financial foundation to accelerate exploration and development activities at its flagship gold projects in Côte d'Ivoire.
Advancing Côte d'Ivoire Gold Projects
Aurum’s primary focus remains on its Boundiali and Napié Gold Projects, which collectively hold 3.28 million ounces of gold resources. The company is progressing a Pre-Feasibility Study (PFS) for the Boundiali project, expected to be completed in the near term, alongside resource updates for both projects anticipated early next year.
Managing Director Dr. Caigen Wang highlighted the strategic timing of the sale, noting the rapid appreciation of Montage shares and the opportunity to bolster Aurum’s cash reserves. This financial strength positions Aurum well to continue its aggressive drilling programs and resource expansion efforts, supported by its fleet of 12 diamond drill rigs.
Robust Resource Base and Growth Potential
The Boundiali Gold Project, Aurum’s flagship asset, boasts a 2.41 million ounce resource and is strategically located near major gold mines operated by industry leaders such as Resolute, Perseus, and Barrick. Aurum holds interests in multiple tenements with staged earn-in agreements, offering clear pathways to increased ownership and production potential.
Meanwhile, the Napié Gold Project contributes an additional 0.87 million ounces to Aurum’s resource portfolio. The company also maintains interests in other exploration projects, including manganese and lithium prospects, underscoring its diversified approach within Côte d'Ivoire.
Looking Ahead
With a strengthened balance sheet and ongoing exploration momentum, Aurum is well-positioned to deliver on its development milestones. The upcoming resource updates and PFS results will be critical in shaping the company’s trajectory as it moves towards potential production and value creation for shareholders.
Bottom Line?
Aurum’s cash boost from Montage shares sale sets the stage for pivotal resource updates and project advancement in 2026.
Questions in the middle?
- When exactly will Aurum release the updated resource estimates for Boundiali and Napié?
- What are the key milestones and timelines for the completion of the Boundiali Pre-Feasibility Study?
- How might fluctuations in gold prices and regional regulatory changes impact Aurum’s development plans?
