MARKETS SPECTATOR: Aurora's alluring window

Aurora Minerals has hired a resource-specialist investment bank to help it acquire mining assets at bargain prices, quickly.

Has the plunge in commodity prices and the shares of small mining companies offered up tremendous opportunities? Perth-based Aurora Minerals thinks so. It has hired Miro Advisers and told the boutique resources investment bank to find the company precious or base metal assets that can produce cash flow relatively quickly.

Aurora, which produces no revenue, has about $10 million to spend on finding projects that are close to production but need a cash injection. Such money, says Miro director Wade Evans, will not be spent in one foul swoop. Rather, perhaps as much as $6 million may be spent on different prospects over the next few months as companies similar to Aurora’s market value – $5.2 million – seek an equity partner to keep their mining projects going.

“It’s a great time for someone who believes there are companies out there who have reasonably good projects at an advanced resource stage but who need funding,” Evans told Markets Spectator. “The window to acquire for high quality projects may only last six months.” 

Aurora will look onshore and offshore for assets. The company has a 37 per cent stake in a South Korean tungsten mine.

Yesterday Aurora shares rose 2.1 per cent to 5 cents. The stock has dropped 36 per cent in 12 months. At 1023 AEST the S&P/ASX200 Index rose 18.85, or 0.4 per cent, to 4833.20.

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