Aurania Resources Ltd (TSX-V:ARU, OTCQB:AUIAF). has closed its non-brokered $2.6 million private placement.
That offering was conducted alongside the company's overnight marketed public offering that was successfully completed on October 21, 2021, in which $6.9 million in gross proceeds was raised.
Under the private placement, the company said a total of 1,256,037 units were sold at $1.80 each. And each unit consists of one common share and purchase warrant -- which entitled the holder to purchase one share at $2.20 apiece at any time until October 21, 2026.
READ: Aurania Resources announces closing of $6.9M overnight market public offering
Meanwhile, Noble Capital has taken notice of Aurania’s two fund-raisers, pointing out that the company now has the capital to fund exploration expenditures at its flagship Lost Cities-Cutucu Project in Ecuador and other exploration activities.
“We have updated our 2021 and 2022 estimates and valuation to reflect the issuance of additional common shares and recent changes in relative valuations,” said the firm, which has an Outperform rating on the company’s stock.
“Aurania’s exploration program is providing an abundance of drilling targets for a variety of metals and the potential to make multiple discoveries in its large concession package.”
Nevertheless, Aurania announced that the TSX Venture Exchange has conditionally accepted for listing the 1,256,037 warrants underlying the units issued under the private placement. The warrants issued in connection with the placement are expected to be listed on the exchange, together with the warrants issued in connection with the public offering, effective on or about October 29, 2021.
Pursuant to the terms of the underwriting agreement of the public offering, the company has also paid to the underwriters a cash commission equal to 2% of the gross proceeds (about $45,217). The company has also agreed to pay to certain eligible finders a fee equal to 7% of the gross proceeds raised from subscriptions introduced to the company by such finders (totaling in aggregate about $16,604).
The private placement remains subject to the final acceptance of the exchange. The shares and warrants comprising the units, and the shares underlying the warrants, are subject to a statutory hold period of four months and a day from the date of issuance and hold periods under US securities laws.
The company also noted that CEO Keith Barron participated in the private placement through his personal holding company, Bambazonke Holdings Inc., for 222,222 units.
In addition, Aurania President Richard Spencer and Carolyn Muir, vice president of investor relations, also participated in the private placement for 8,000 and 4,000 units, respectively.
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