Aurelius Minerals Inc. (CVE:AUL) has said it intends to complete a non-brokered private placement offering for aggregate gross proceeds of up to $6.0 million.
Aurelius also announced that it intends to complete a share consolidation on the basis of 10 existing common shares for one new consolidated common share, which it anticipates completing on the closing date of the offering. The consolidation is subject to the approval of the TSX Venture Exchange.
The company said the offering will consist of common shares of the company at a price of $0.06 each on a pre-consolidation basis ($0.60 per share on a post-consolidation basis), and flow-through shares at a price of $0.0675 each on a pre-consolidation basis ($0.675 per share on a post-consolidation basis).
READ: Aurelius Minerals unveils further high-grade gold results from its Aureus East project in Nova Scotia
The net proceeds from the offering will be used by the company for corporate and general working capital purposes, and an amount equal to the gross proceeds from the sale of flow-through shares will be used to incur eligible "Canadian exploration expenses" as defined under the Income Tax Act (Canada) related to the Canadian properties of the company, on or before December 31, 2022. The company said it will renounce to the purchasers of the flow-through shares such Canadian exploration expenses with an effective date of not later than December 31, 2021.
The offering is expected to close on or about April 30, 2021 and is subject to receipt of applicable regulatory approvals including the approval of the TSX Venture Exchange. The securities issued will be subject to a standard four-month hold period.
In connection with the offering, on the closing date, Aurelius expects to issue to Sprott Private Resource Lending (Collector), LP, (SPRL), that number of common shares at a price of $0.06 per share on a pre-consolidation basis ($0.60 per share on a post-consolidation basis), in connection with the exercise by SPRL of its participation right, to maintain its 16.19% shareholding of Aurelius.
Subject to the approval of the TSX Venture Exchange, the value of the participation right exercise will be credited towards the First Deferred Payment in connection with the acquisition of the Aureus Gold assets.
Currently, the company has 276,069,713 issued and outstanding common shares, and assuming no additional common shares are issued prior to completion of the consolidation (including under the offering and the participation by SPRL) upon completion of the consolidation there will be 27,606,971 common shares on a post-consolidation basis outstanding. The offering is being conducted on a pre-consolidation basis.
Aurelius is a well-positioned gold exploration company focused on advancing its recently acquired and renamed Aureus Gold Properties, including Aureus East and West, the Tangier Gold Project and the Forest Hill Gold Project located in Nova Scotia, Canada.
The company is also focused on advancing two district-scale gold projects in the Abitibi Greenstone Belt in Ontario, Canada, one of the world's most prolific mining districts; the 968-hectare Mikwam Property, in the Burntbush area on the Casa Berardi trend and the 12,425-hectare Lipton Property, on the Lower Detour Trend.
It has a management team with experience in all facets of the mineral exploration and mining industry who will be considering additional acquisitions of advanced staged opportunities in Nova Scotia, the Abitibi and other proven mining districts.
Contact the author at jon.hopkins@proactiveinvestors.com