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Aura Announces Closing of $1,538,000 Private Placement and Completion of the Amalgamation with Territory Metals Corp.
Ottawa, Ontario--(Newsfile Corp. - July 27, 2020) - Aura Resources Inc. (TSXV: AUU) ("Aura" or...
About this update from West Point Gold Corp.
[{"type":"text","content":"Aura Announces Closing of $1,538,000 Private Placement and Completion of the Amalgamation with Territory Metals Corp.Ottawa, Ontario--(Newsfile Corp. - July 27, 2020) - Aura Resources Inc. (TSXV: AUU) (\"Aura\" or the \"Company\") announces that following significant investor demand it has closed its private placement financing raising gross proceeds of $1,538,000 with the issuance of a total of 25,633,333 units, at $0.06 per unit (the \"Offering\"). Each unit consists of one common share of the Company and one-half common share purchase warrant. A total of 12,816,666 warrants were issued entitling the holders to purchase one common share of the Company at a price of $0.10 per share until July 24, 2022.In connection with the Offering, the Company has paid eligible finders cash commissions in the amount of $19,320 and an aggregate of 202,000 finder warrants (\"Finder Warrants\"). Each Finder Warrant entitles the finder to acquire one common share at an exercise price of $0.10 and is exercisable until July 24, 2022.The Offering is subject to final approval of the TSX Venture Exchange. All securities issued under the Offering are subject to a statutory hold period until November 25, 2020.Mr. Robert Johansing, President, CEO and director and Mr. John McNeice, Chief Financial Officer participated in the private placement and acquired an aggregate of 1,673,333 units for $100,400. The participation of these insiders in the private placement constitutes a Related Party Transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The board of directors of the Company, with Mr. Johansing abstaining from the vote, determined that the transaction is exempt from the formal valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 for the related party transaction, as neither the fair market value of securities issued to insiders nor the consideration paid by insiders exceeded 25 percent of the Company's market capitalization. The Company did not file a material change report in respect of the transaction 21 days in advance of the closing of the private placement because insider participation had not been confirmed. The shorter period was necessary in order to permit the Company to close the private place...