Aurion Resources Ltd. (CVE:AU) has announced a non-brokered private placement of common shares which will enable Kinross Gold Corporation to maintain its ownership position of 9.98% of the issued and outstanding common shares of the company.
The moves comes after Aurion announced a brokered private placement of 10,588,235 common shares at a price of C$0.85 each through a syndicate of agents led by Cormark Securities Inc on February 1, 2021. The company also granted the agents an option, exercisable at any time up to 48 hours prior to the closing of the brokered offering, to purchase up to an additional 15% of the number of common shares issuable on the same terms and conditions.
READ: Aurion Resources upsizes previously announced placing to C$9M
Kinross initially purchased 6,853,500 common shares of the company by way of a private placement in September 2017, thus acquiring 9.98% of the then issued and outstanding common shares of the company. Kinross has the right to maintain its pro-rata interest in the company for so long as it owns at least 5% of the issued and outstanding common shares of the company from time to time.
The Kinross private placement is expected to comprise the sale of a minimum of 1,429,500 common shares and a maximum of 1,605,600 common shares at a price of C$0.85 per common share, with the final amount to be determined by the extent to which the agents' option on the brokered offering is exercised.
The closing of each of the brokered offering and the Kinross private placement is expected to occur on or about February 23, 2021, and is subject to the receipt of any necessary regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with both will be subject to a statutory four-month hold period.
Aurion is a Canadian exploration company with a strategy 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 Flagship Risti and Launi projects, as well as advancing joint venture arrangements with Kinross Gold Corp., B2 Gold Corp., and Strategic Resources Inc. in Finland.
Contact the author at jon.hopkins@proactiveinvestors.com