4 September 2009
AUROX SECURES $10M EQUITY PLACEMENT FACILITY
Pilbara metals developer, Aurox
Resources Limited (ASX : AXO)(Aurox or the
Company) is pleased to announce that is has today secured a A$10,000,000
facility with US-Based Investment Fund YA Global Master SPV Ltd (YA Global).
Under the terms of the facility, Aurox
may, at its discretion, issue shares to YA Global at any time over the next
60 months, up to a total of A$10,000,000. Aurox may draw down up to A$300,000
in any period of 10 trading days.
Shares issued to YA Global will be priced at the
higher of:
(a) the lowest daily
volume weighted average price (VWAP) of Aurox shares
traded on each of the 10 trading days following the issue of a drawdown notice
by Aurox; and
(b) the minimum acceptable
price specified by Aurox in the relevant draw down notice, subject to certain
conditions.
A commission of 4.5% will be
payable by Aurox at the time of issue.
Aurox is free to obtain additional or alternative
financing elsewhere and there will not be any restrictions or penalties.
Aurox Managing Director, Charles Schaus said that
whilst the Company’s cash position is strong and there is no immediate
requirement for short term funding, it is ideal to have a competitive-priced
source of funding available at short notice as a contingency measure.
”It significantly reduces the Company’s medium-term
funding risk whilst increasing flexibility,” Mr Schaus said.
“Having a substantial equity placement facility available on tap,
regardless of market conditions, clearly demonstrates the strength and quality
of the Company and its Balla Balla Project.
“It would allow the Company to strategically raise
capital on favourable terms at a time of its choosing.”
Managed by US-Based Yorkville Advisors LLC, the
YA Global Group of Funds has a solid reputation in the US and UK financial markets and a
rapidly growing reputation in Australia
for structuring convertible loans and equity participation agreements. To
date, the YA Global Group has made available in excess of over
$300,000,000 for over 20 ASX‑listed companies.
For more information contact:
Charles Schaus
Managing
Director
Telephone +61 (0)8 9382 4477
Warrick Hazeldine
Purple
Communications
Telephone +61 (0)8 6314 6300