Aurania Resources Ltd (TSX-V:ARU, OTCQB:AUIAF) is poised to bring in around C$6 million gross from a public offering to fund exploration at its flagship Lost Cities - Cutucu project in Ecuador and for working capital.
The company has struck a deal with a syndicate of underwriters led by Cantor Fitzgerald Canada Corp, which will act as sole bookrunner, to sell over 3.3 million units at C$1.80 each to raise gross proceeds of C$6,003,000.
Each unit consists of one share and one warrant. Each warrant allows the holder to buy one share for C$2.20 for five years from closing.
The underwriters have also been granted an over-allotment option, exercisable in whole or in part, for 30 days, to buy a further 500,250 units at the offer price. If this is exercised in full, the total gross proceeds to Aurania will be around C$6,903,450.
READ: Aurania Resources intersects “significant” silver-zinc mineralization at its Lost Cities-Cutucu project in Ecuador
Aurania said it will also carry out a concurrent private placing of units for gross proceeds of up to C$2 million on the same terms as above.
This private placing supersedes the previously announced non-brokered private placement of units on September 13 this year.
The securities issued as part of this placing will be subject to a four-month plus one day hold period starting on the day of closing and both the offering and private placing are expected to close on or around October 20 this year.
Aurania is focused on precious metals and copper in South America. Its 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 writer at giles@proactiveinvestors.com