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Aurania Announces US$1.18M Loan
Toronto, Ontario--(Newsfile Corp. - March 18, 2022) - Aurania Resources Ltd. (TSXV: ARU) (OTC...
About this update from Aurania Resources Ltd.
[{"type":"text","content":"Aurania Announces US$1.18M LoanToronto, Ontario--(Newsfile Corp. - March 18, 2022) - Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (FSE: 20Q) (\"Aurania\" or the \"Company\") announces that it has entered into a US$1,187,500 million loan (the \"Loan\") with Dr. Keith Barron, the Company's Chairman, CEO and largest shareholder (the \"Lender\"), pursuant to a promissory note issued by the Company to the Lender as of the date hereof (the \"Note\"). In accordance with the terms and conditions of the Note, the Loan is due and payable and shall be repaid in full upon notice of twelve months and one day from the Lender to the Company (the \"Maturity Date\"), whereupon all unpaid principal and accrued interest thereunder shall be payable to the Lender. The Loan is unsecured and bears interest at a rate of two percent (2%) per annum.The Loan has closed in advance of the anticipated closing of the Company's non-brokered private placement of up to 2,142,857 units of the Company (each, a \"Unit\") at a price of C$0.70 per Unit, for aggregate gross proceeds of up to C$1,500,000 (the \"Offering\"), previously announced in the Company's news release dated February 28, 2022. The Offering is expected to close in two tranches with the first tranche expected to close shortly after the receipt of conditional approval of the Offering from the TSX Venture Exchange (the \"TSXV\"), followed by the second tranche shortly thereafter. Under the Offering, Dr. Keith Barron has also committed to purchase 571,428 Units, being approximately C$400,000 (the \"Insider Participation\"). Dr. Keith Barron is a related party of the Company by virtue of the fact that he is the Chairman, the Chief Executive Officer, a promoter and a principal shareholder of the Company, and as a result, each of the Loan and the Insider Participation (collectively referred to herein as, the \"Related Party Transactions\") constitutes a \"related party transaction\" for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). In addition, as the Loan and the Insider Participation each involve Dr. Keith Barron, a related party of the Company, and have been negotiated at approximately the same time, the Related Party Transactions may be considered \"connected transactions\" within the meaning of MI 61-101. The Com...