Business
Aura Silver Announces Closing of Non-Brokered Private Placement
Ottawa, Ontario--(Newsfile Corp. - June 1, 2018) - Aura Silver Resources Inc. (TSXV: AUU) ("Au...
About this update from West Point Gold Corp.
[{"type":"text","content":"Aura Silver Announces Closing of Non-Brokered Private PlacementOttawa, Ontario--(Newsfile Corp. - June 1, 2018) - Aura Silver Resources Inc. (TSXV: AUU) (\"Aura Silver\" or the \"Company\") announces that it has closed its non-brokered private placement of units raising proceeds of $280,020 (the \"Offering\"). A total of 9,334,000 units were issued to investors at $0.03 per unit. Each unit consisted of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.05 per share for a period of 36 months following the date of issuance (\"Warrants\"). In connection with the Offering, the Company has paid eligible finders cash commissions in the amount of $9,600 being 8% of the aggregate proceeds from the sale of units to purchasers introduced by the finders as well as issued an aggregate of 320,000 compensation options (each a \"Compensation Option\"), which is equal to 8% of the number of units sold to purchasers introduced by the finders. Each Compensation Option entitles the finder to acquire a unit (comprising a common share and a Warrant) at an exercise price of $0.05 and is exercisable for 36 months following the date of issuance.Dr. James Franklin, a director of the Company subscribed for 500,000 Units for $15,000. Following the closing of the Offering Dr. Franklin holds 1,347,500 common shares of the Company being approximately 0.98% of the issued and outstanding shares. The participation of Dr. Franklin 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 Company relied on exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 from the formal valuation and minority shareholder approval requirements 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 c...