Aurelius Minerals Inc (CVE:AUL) has closed the first tranche of its $6 million non-brokered private placement.
In a statement, the company said It offered 3,595,041 common shares on a post-consolidation basis for aggregate proceeds of $2,157,025, and 4,998,462 common shares which qualify as "flow-through shares" on a post-consolidation basis for proceeds of $3,373,962 -- for combined gross proceeds of $5,530,987.
The proceeds from the sale of shares will be used 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.
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The company said it will renounce to the purchasers of the flow-through shares such Canadian exploration expenses with an effective date of no later than December 31, 2021.
The offering is subject to receipt of the final approval of the TSX Venture Exchange. The securities issued are subject to a statutory four-month hold period expiring four months and one day from the date of issuance.
The company said it expects to close the remaining tranche of the offering for additional gross proceeds of $510,000 on or about May 10, 2021.
In connection with the offering, Aurelius said it expects to issue to Sprott Private Resource Lending (SPRL) up to approximately 366,575 common shares at $0.60 each (on a post-consolidation basis), in satisfaction of the exercise by SPRL of its participation right to maintain its 18.82% shareholding of Aurelius. 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 by Aurelius.
Following completion of the consolidation, effective May 4, 2021, and the offering, Aurelius said it expects to have approximately 37,000,464 common shares issued and outstanding, and 37,367,039 common shares issued and outstanding following the issuance of shares to SPRL discussed above on a non-diluted basis.
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