2.4.0.8109 - Disclosure - ORGANIZATION AND BUSINESStruefalsefalse1falsefalsefalseeol_PE793818--1310-Q0005_STD_273_20130731_0http://www.sec.gov/CIK0001450708duration2012-11-01T00:00:002013-07-31T00:00:001false4aurm_OrganizationAndBusinessDisclosureTextBlockaurm_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">
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ORGANIZATION AND BUSINESS</font></div>
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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Aurum,
Inc. ("Aurum” or the “Company") is a Delaware
corporation, originally incorporated in Florida as Liquid Financial
Engines, Inc. The principal stockholder of Aurum is Golden Target
Pty Ltd., an Australian corporation (“Golden”), which
owned 96.21% of Aurum as of July 31, 2013.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On
January 20, 2010, the Company re-incorporated in the state of
Delaware (the “Reincorporation”) through a merger
involving Liquid Financial Engines, Inc. (“Liquid”) and
Aurum, Inc., a Delaware Corporation that was a wholly owned
subsidiary of Liquid. The Reincorporation was effected by merging
Liquid with Aurum, with Aurum being the surviving entity. For
financial reporting purposes Aurum is deemed a successor to
Liquid.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
July 2009, Golden acquired a 96% interest in Aurum from certain
stockholders. In connection therewith, the Company appointed a new
President/Chief Executive Officer and Chief Financial
Officer/Secretary and a new sole Director. The sole director and
stockholder of Golden is also the President and CEO of the
Company.</font></div>
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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Commencing
August 2009, the Company decided to focus on mineral exploration
for gold and copper in the Lao Peoples Democratic Republic (Lao
P.D.R or Laos). The Company is considered to be in the exploration
stage.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
December 2010, the Company executed a Management and Shareholders
Agreement with Argonaut Overseas Investments Ltd
(“AOI”), an indirectly wholly owned Subsidiary of
Argonaut Resources N.L., in respect to Argonaut’s 70% held
Century Concession in Laos.</font></div>
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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
agreement appoints Aurum as the manager of the Century Thrust Joint
Venture Agreement (“Joint Venture”) and gives the
Company the right to earn 72.86% of AOI’s interest in the
Joint Venture which is equivalent to a 51% beneficial interest in
the Century Concession. In order to acquire this interest, Aurum
may be required to spend US$6.5 million on exploration within the
five year period ending December 10, 2015.</font></div>
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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On
February 10, 2011, the Company entered into a Deed of Agreement
with the shareholders of the Lao Inter Mining Options Ltd
(“LIMO”) which granted Aurum an option to purchase
LIMO’s 20% interest in the Joint Venture. This Agreement, in
conjunction with the Management and Shareholders Agreement with AOI
would have enabled Aurum to acquire a 71% beneficial interest in
the Century Concession. On October 24, 2011, the Company executed a
Deed of Variation of Call Option extending the exercise date of
Option to April 24, 2012, for a consideration of $55,000 for each
month extended (see note 14). In April 2012, the Company decided
not to exercise the option to purchase 20% of the Joint
Venture.</font></div>
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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company’s ability to continue operations through the
remainder of 2013 is dependent upon future funding from affiliated
entities, capital raisings, or its ability to commence revenue
producing operations and positive cash flows.</font></div>
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