Aurania Resources Ltd told investors that its board of directors has given its approval for a non-brokered private placement of up to 2,083,334 units at C$2.40 per unit for gross proceeds of up to C$5 million.
The mineral exploration company said the net proceeds from the offering will be used to advance exploration at its Lost Cities - Cutucu Project in Ecuador, including drilling of gold, silver and copper targets, basic exploration including field work and sampling.
READ: Aurania Resources preparing to drill Tatasham target in Ecuador in fourth quarter this year
Aurania said funds will also be targeted at corporate social responsibility work with communities within and immediately adjacent to the Lost Cities - Cutucu concession area, and for general working capital purposes.
Each unit in the offer will consist of one common share and one-half of one warrant, with each whole warrant exercisable into one common share at a price of C$3.00 for a period of 24 months after closing.
The offer is expected to be completed on or about September 30, 2021, subject to the receipt of all necessary regulatory approvals, including the receipt of approval from the TSX Venture Exchange.
Aurania’s flagship asset, the Lost Cities - Cutucu project, sits in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.
Contact the author at stephen.gunnion@proactiveinvestors.com