Aurion Resources Ltd (TSX-V:AU) has announced a non-brokered private placement of common shares to Kinross Gold Corporation which, on closing, will enable Kinross to maintain its previous ownership position of approximately 9.98% of the company’s issued and outstanding common shares.
The company said Kinross initially purchased 6,853,500 of its common shares through a private placement in September 2017, acquiring 9.98% of the then issued and outstanding common shares of the company.
Following its recent announcement of a brokered private placement of 9,090,909 common shares at C$0.55 each through a syndicate of agents led by Red Cloud Securities Inc, Aurion said Kinross has the right to maintain its pro-rata interest in the company for as long as it owns an interest of at least 5%.
READ: Aurion Resources inks deal for private placement to raise gross proceeds of up to C$5M
The company has also granted the agents an option, exercisable at any time up to 48 hours prior to the closing of the brokered offering, to sell up to an additional 1,818,181 common shares issuable under the brokered offering on the same terms and conditions.
The company said the Kinross private placement is expected to comprise the sale of a minimum of 1,041,068 common shares and a maximum of 1,242,640 common shares at C$0.55 each, with the final amount to be determined by the extent to which the agents' option is exercised.
“The company plans to use the net proceeds of the brokered offering and the Kinross private placement for the exploration and advancement of the company's projects in Finland, which includes its Risti, Launi and other projects on its 100% owned land and its joint venture properties with B2Gold Corp and Kinross Gold Corporation, as well as for general working capital purposes,” Aurion said in a statement.
The closing of each of the brokered offering and the Kinross private placement is expected to occur on or about April 12, 2023, and is subject to certain conditions, including, but not limited to, the receipt of any necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The company noted that the securities to be offered under the Kinross private placement have not been, and will not be, registered under the US Securities Act or any US state securities laws, and may not be offered or sold within the US 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 its experienced team or by business partnerships and joint venture arrangements.
The company's current focus is exploring its Risti and Launi projects, as well as advancing its joint venture properties with B2Gold and Kinross in Finland.
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