Aurum to raise £6m and change its name

Aurum Mining has announced a conditional placing of up to 150,000,000 ordinary shares at 4p apiece raising approximately £6 million before expenses.

The company also plans to change its name to Shearwater Group, subject to a shareholder approval in January.

The company will focus on the acquisition and development of businesses operating within the fields of information security and cyber security, with the aim of building a group of significant scale providing digital resilience solutions to UK based private and public sector organisations. The funds raised from the placing will help support the company’s ‘buy, focus, grow’ strategy, and following the recently announced board appointments, ideally positions the business for growth.

The directors estimate in the UK alone that the highly fragmented cyber security market is worth approximately US$7 billion. Further, the global market for cyber security is estimated to be worth approximately US$75 billion and is growing at around 10 per cent per annum.

The company will also seek to divest its existing mining assets over the coming months.

Chairman David Williams said: “We have extremely ambitious plans for the Company as has been made clear by the series of high-profile appointments to our board in recent weeks. We now have a team with substantial experience of operating within the technology, defence, cyber, information security and communication sectors, and a track record of delivering shareholder value through accelerated buy and build processes. This is an exciting time for the Company.”

The placing price represents a discount of approximately 30% compared with the mid-market price of 5.75 pence at close of trading on 20 December.

The placing is conditional (among other things) upon the passing of certain resolutions in order to ensure that the directors have the necessary authorities and powers to allot new shares for cash on a non-pre-emptive basis to persons participating in the placing.

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