Aurania Resources Ltd. (TSX-V: ARU) (FSE: 20Q) announces that the Company has closed its previously announced overnight marketed public offering of units of the Company, including exercise in full of the over-allotment option. A total of 2,679,500 Units were sold at a price of C$4.30 per Unit for gross proceeds of approximately C$11.5 million. Each Unit is comprised of one common share in the capital of the Company and one-half Common Share purchase warrant. Each Warrant shall entitle the holder to purchase one Common Share at C$5.50 at any time until October 29, 2022. The Offering was completed pursuant to an underwriting agreement dated October 1, 2020 among the Company and Cantor Fitzgerald Canada Corporation, as lead underwriter and sole bookrunner, and a syndicate of underwriters including Canaccord Genuity Corp., Echelon Wealth Partners Inc., Eight Capital, Haywood Securities Inc., and Raymond James Ltd
In connection with the Offering, the Company has paid to the Underwriters a fee of C$690,312 and issued to the Underwriters 160,770 compensation warrants (“Compensation Warrants”). Each Compensation Warrant is exercisable into a Unit at the exercise price of $4.30 per Unit until October 29, 2022.
Anticipated use of the proceeds of the Offering are for exploration expenditures at the Company’s Lost Cities – Cutucu Project in Ecuador, initial exploration in adjacent Peru and for working capital and general corporate purposes. As stated in its September 14, 2020 press release, the Company has commenced drilling on the Tsenken N2 copper-silver target and plans to continue its drill program in southeastern Ecuador throughout the coming months.
The Offering was completed pursuant to a short form prospectus in Canada in the provinces of Ontario, British Columbia and Alberta. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
The Company is also pleased to announce that the TSX Venture Exchange has conditionally accepted for listing a total of 1,339,747 Warrants underlying the Units issued pursuant to the Offering. The Warrants will be listed for trading on the TSX Venture Exchange under the symbol “ARU.WT” effective on, or about Monday, November 2, 2020.
The Warrants are governed by the terms of a Warrant Indenture (the “Warrant Indenture”) dated October 29, 2020 between the Company and TSX Trust Company of Canada as warrant agent, a copy of which shall be available under the Company profile at www.sedar.com after November 2, 2020. For further details regarding the Warrants, please refer to the Warrant Indenture.
Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America. Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.
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We acknowledge the [financial] support of the Government of Canada.