Ferro-alloys.com：Auroch Minerals Ltd announced another large option conversion, mainly carried out by a group of key cornerstone investors, contributing approximately US$1.3 million to the company’s working capital.

Cornerstone investors include long-term mature investors with extensive investment and mining experience. Many of them are the initial investors in the company's initial public offering and are currently the 20 largest shareholders.

Another 11.1 million options were exercised at a price of US$0.10 each, and another 2 million options were exercised at a price of US$0.12 each — well before their expiration in 2023.

"Portfolio Endorsement"

This continued support through the conversion of these options before expiration further recognized the company’s strategic investment portfolio of high-grade nickel sulfide projects in Western Australia, including the Saint Nickel project and the Leinster Nickel project, as well as the recently acquired Nipin Nickel Project.

Aidan Platel, Managing Director of Auroch, said: "We are very pleased to receive the strong support from our core shareholders. This is a great contribution to the company and its portfolio of high-grade and high-potential nickel sulfide assets in Western Australia. Great recognition.

"The inflow of capital, coupled with our existing cash balance, puts Auroch in a very advantageous position to execute the active exploration plan planned for 2021, and to develop and utilize the high-grade resources of all three of our nickel sulfide projects. Because we are conducting scope research and possible development."

Plan to actively explore

The funds raised through the exercise of these options build on the company’s existing strong cash position of $3.2 million and provide funding for active exploration projects planned this year.

The company plans to complete a 3,500-meter reverse circulation (RC) drilling program, which has been carried out in Niping to test the extension of high-grade nickel sulfide mineralization near the mine, as well as the previously untested 10-km range of unexplored High priority targets along the route.

Downhole electromagnetic and surface MLEM surveys in Nipin, as well as hollow core and other surface geochemical sampling procedures, will determine and refine drilling targets for the next round of RC drilling to begin in late March.

In the Leinster project, Auroch also plans to complete a 3,000-meter reinforced concrete drilling program to test the exciting high-potential targets starting from Horn, as well as other new oilfield prospects such as Firefly and North Sinclair.

The company also plans to complete a 1,500-meter reinforced concrete drilling project at the Saint Nickel project to test the "supply channel" massive nickel sulfide mineralization in the T4, T5 and T6 deposits.

Financial outlook

The company expects to receive more of the 39.7 million outstanding US$0.10 option conversions before expiration in November 2021.

This will eliminate any medium-term cash risks and provide sufficient funds for the company's planned exploration and resource drilling, so that all three nickel sulfide projects will meet the resource estimation target of the Australian Joint Committee on Mineral Reserves (2012) by the end of the year.

• [Editor:zhaozihao]