Business
Aurania Announces Closing of First Tranche of Strategic Financing
Toronto, Ontario--(Newsfile Corp. - February 28, 2020) - Aurania Resources Ltd. (TSXV: ARU) (...
About this update from Aurania Resources Ltd.
[{"type":"text","content":"Aurania Announces Closing of First Tranche of Strategic FinancingToronto, Ontario--(Newsfile Corp. - February 28, 2020) - Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (FSE: 20Q) (\"Aurania\" or the \"Company\") is pleased to announce that it has closed the first tranche (the \"First Tranche\") of the private placement announced on February 19, 2020 for gross proceeds of C$1,469,369.20, and in addition, has received executed subscription agreements for approximately $4.7M which is expected to close in a second tranche next week.Details of the Private PlacementOn February 19, 2020, the Company announced a non-brokered private placement (see news release dated February 19, 2020) for units of the Company (the \"Units\") at a price of C$3.10 per Unit, for total gross proceeds of up to C$8,000,000 (the \"Offering\"). Each Unit consist of one common share of the Company (a \"Common Share\") and one-half of a Common Share purchase warrant (each whole warrant a \"Warrant\"). Each whole Warrant entitles the holder to purchase one Common Share at an exercise price of C$4.25 for a period of 18 months following closing of the Offering. The Offering includes an over-allotment option, allowing the Company to issue up to an additional 774,193 Units for additional gross proceeds of up to C$2,400,000. The First Tranche of the Offering consisted of 473,990 Units for the gross proceeds of C$1,469,369.20. Eligible finders were paid C$604.00 in cash compensation and were issued 840 compensation warrants (\"Compensation Warrants\") for their assistance. Each Compensation Warrant is exercisable into a Common Share at C$4.25 per Common Share for 18 months from the date of issuance. Use of ProceedsThe Company intends to use the net proceeds raised from the sale of the Units to advance exploration in the Lost Cities - Cutucu Project and environs, including corporate social responsibility work required to obtain access to concession areas, basic exploration including field work and sampling, the completion and interpretation of geophysics surveys to refine specific target areas and to drill gold, silver and copper targets, and for general working capital purposes. Hold PeriodThe Units, the Compensation Warrants and underlying securities are subject to a customary four months and a day hold period under applicable Canadian securities laws. The Units, t...