Dr. Richard Spencer reports
AURANIA RESOURCES ANNOUNCES SIZE AND PRICING OF PREVIOUSLY ANNOUNCED OVERNIGHT MARKETED OFFERING
Aurania Resources Ltd., further to its previously announced overnight marketed public offering of units of the company, has entered into an underwriting agreement with a syndicate of underwriters led by Cantor Fitzgerald Canada Corp., as sole bookrunner, and including Canaccord Genuity Corp. and Echelon Wealth Partners to sell 3,335,000 offered units at a price of $1.80 per offered unit for gross proceeds of $6,003,000. Each offered unit comprises one common share in the capital of the company and one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at $2.20 at any time on or before the date which is five years after the closing date.
The company has granted to the underwriters an option, exercisable in whole or in part, in the sole discretion of the underwriters, for a period of 30 days from and including the closing of the offering, to purchase up to an additional 500,250 offered units at the offering price. If the overallotment option is exercised in full, the total gross proceeds to the company will be approximately $6,903,450.
The company will pay the underwriters a cash commission equal to 6 per cent of the gross proceeds of the offering, including proceeds received from the exercise of the overallotment option, in addition to broker warrants to purchase up to 6 per cent of the number of offered units, including the offered units from the exercise of the overallotment option sold in the offering, at the closing of the offering. Each broker warrant shall entitle the underwriters to purchase one offered unit at the issue price at any time on or before the date which is five years after the closing date.
Concurrent private placement
The company will also be conducting a concurrent private placement financing of units for gross proceeds of up to $2-million on the same terms and conditions as the offering. The private placement is superseding the previously announced non-brokered private placement of units on Sept. 13, 2021.A commission of 2 per cent will be paid to the underwriters in relation to the private placement. A finder's fee of up to 7 per cent may also be paid to certain eligible finders for funds that were committed to the previously announced non-brokered private placement and that are now committed to the private placement. The securities issued pursuant to the private placement shall be subject to a four-month-plus-one-day hold period commencing on the day of the closing of the private placement under applicable Canadian securities laws.
Anticipated closing
The offering and private placement are expected to close on or about Oct. 20, 2021, and will be subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange of the listing of the common shares and warrants (including the common shares and warrants comprising the units, the common shares issuable upon the exercise of the warrants, and the warrants and common shares issuable pursuant to the exercise of the broker warrants).
Use of proceeds
Anticipated use of the proceeds of the offering and private placement will be for exploration expenditures at the company's Lost Cities-Cutucu project in Ecuador and for working capital and general corporate purposes.
Availability of short form prospectus and limitations in the United States
The amended and restated preliminary short form prospectus in respect of the offering is available on SEDAR. Alternatively, a written prospectus relating to the offering may be obtained upon request by contacting the company or Cantor Fitzgerald Canada in Canada, attention: Equity Capital Markets, 181 University Avenue, Suite 1500, Toronto, Ont., M5H 3M7, e-mail: ecmcanada@cantor.com.
The offered units and securities underlying them, have not been, and will not be, registered under the U.S. Securities Act and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements.
About Aurania Resources Ltd.
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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