Aurania Resources Ltd. (CVE:ARU) (FRA:20Q) has confirmed details of the overnight marketed public offering of units it announced late on Wednesday, which will raise gross proceeds of C$6.758 million for the company.
Aurania said it has entered into an agreement with Cantor Fitzgerald Canada, as lead underwriter and sole bookrunner, and a syndicate of underwriters including Canaccord Genuity and Echelon Wealth Partners to sell 2,180,000 offered units at a price to the public of $3.10 per unit.
READ: Aurania Resources making good progress with exploration at its flagship Lost Cities-Cutucu project in Ecuador
Each offered unit is comprised of one common share in the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one Aurania common share at $4.25 at any time on or before the date which is 36 months after the closing date.
The company has also granted to the underwriters an over-allotment option, exercisable in whole or in part, in the sole discretion of the underwriters, for a period of 30 days from and including the closing of the offering, to purchase up to an additional 327,000 offered units at the offering price. If the over-allotment option is exercised in full, the total gross proceeds to the company will be approximately $7,771,700.
Aurania said it will also have the right to conduct a concurrent private placement financing of units for gross proceeds of up to $1,250,000 on the same terms and conditions as the offering.
The company noted that the offering and private placement are expected to close on or about April 8, 2021, and will be subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
Anticipated uses of the proceeds of the offering will be used for exploration expenditures at Aurania's Lost Cities - Cutucu Project in Ecuador and for working capital and general corporate purposes. Any net proceeds received from the private placement will be applied to the exploration of the company's Peru concessions and for working capital purposes, Aurania said.
Auriana said it will pay the underwriters a cash commission equal to 6.0% of the gross proceeds of the offering, including proceeds received from the exercise of the over-allotment option, in addition to broker warrants to purchase up to 6.0% of the number of offered units, including those in the over-allotment option sold in the offering. Each broker warrant will entitle the underwriters to purchase one unit at the issue price at any time on or before the date on which the warrants issued under the offering are set to expire.
The offered units will be offered by way of a short form prospectus in Canada in the provinces of Ontario, British Columbia and Alberta and in the United States under a private placement. The units will not be offered or sold in the United States or to US persons except under Rule 144A or Regulation D or in such other manner as to not require registration under the United States Securities Act of 1933, as amended.
Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America. Its flagship asset, The Lost Cities - Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.
Contact the author at jon.hopkins@proactiveinvestors.com.