Aurania Resources Ltd (TSX-V:ARU, OTCQB:AUIAF) announced that it has closed its overnight marketed public offering of units.
The company hopes to use the net proceeds for exploration expenditures at its flagship asset Lost Cities-Cutucu Project in Ecuador, and for working capital and general corporate purposes.
The offering was completed following a short form prospectus dated October 14, 2021, and filed in Ontario, British Columbia, and Alberta.
READ: Aurania Resources poised for C$6M offering to advance flagship Ecuador project
The Toronto-based company shared that a total of 3,835,250 units were sold at $1.80 per unit for gross proceeds of about $6.9 million. Each unit is comprised of one common share and one common share purchase warrant.
Aurania added that each warrant would entitle the holder to purchase one common share at $2.20 at any time until October 21, 2026.
The mineral exploration company has paid a 6% cash commission of the gross proceeds to the underwriters, and also issued a number of public offering units equal to 6% as compensation. Each compensation unit is exercisable into a unit at the offering price until October 21, 2026.
Simultaneously, Aurania said that a non-brokered private placement of units will be increased to 1,256,037 units, resulting in gross proceeds to the company of up to $2,260,866.60, with each unit to be issued at the offering price.
It also announced that TSX Venture Exchange has conditionally accepted for listing the 3,835,250 warrants underlying the units. The warrants are expected to be listed for trading on October 29, 2021.
A director of Aurania, Richard Spencer, also participated in the offering for 13,900 units.
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.
Contact Ritika at ritika@proactiveinvestors.com