Aurion Resources Ltd (TSX-V:AU) said it has entered into a letter agreement with Red Cloud Securities Inc to act as lead agent and sole bookrunner on behalf of a syndicate of agents in connection with a fully marketed, private placement for the sale of up to 9,090,909 common shares of the company at a price of C$0.55 each for gross proceeds of up to C$5 million.
The company also said it has granted to the agents an option, exercisable in full or in part up to 48 hours prior to the closing of the offering, to sell up to an additional 1,818,181 offered shares at the offering price for additional gross proceeds of up to C$1 million.
Aurion said it plans to use the net proceeds of the offering for the exploration and advancement of its projects in Finland, which includes its Risti and Launi projects and its joint venture properties with B2Gold Corp and Kinross Gold Corporation, as well as for general working capital purposes.
READ: Aurion Resources hails latest drill results at Risti property, including hitting multiple zones of gold mineralization at Kaaresselkä prospect
The offering is scheduled to close on or around April 12, 2023, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The offered shares will have a hold period of four months and one day from the closing date of the offering.
As consideration for their services, the agents will receive a cash commission of 6.0% of the gross proceeds of the offering and broker warrants in an amount equal to 6.0% of the aggregate number of offered shares sold under the offering.
Each broker warrant will be exercisable to purchase one common share of the company at a price of C$0.55 for a period of 24 months from the closing date of the offering. Offered shares sold to select purchasers will be subject to a reduced cash commission of 3.0% and broker warrants equal to 3.0% of the number of offered shares sold to such purchasers.
The offered shares being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a US person.
Aurion's strategy is to generate or acquire early-stage precious metals exploration opportunities and advance them through direct exploration by our experienced team or by business partnerships and joint venture arrangements.
The company's current focus is exploring on its Risti and Launi projects, as well as advancing its joint venture properties with B2Gold and Kinross in Finland.
Contact the author at jon.hopkins@proactiveinvestors.com