Aurion Resources (TSX-V:AU) Ltd. has announced a non-brokered private placement of shares by Kinross Gold Corporation (TSX:K), which, on closing, will enable Kinross to maintain its ownership position of 9.98% of the issued and outstanding common shares of the company.
The St John’s, Newfoundland-based company had issued releases on November 4 and November 5, 2021, announcing a brokered private placement of 15,000,000 shares at a price of C$0.90 per common share through a syndicate of agents led by Red Cloud Securities Inc.
Aurion has also granted the agents an option, exercisable at any time up to 48 hours prior to the closing of the brokered offering, to buy up to an additional 1,666,667 common shares issuable under the brokered offering on the same terms and conditions.
READ: Aurion Resources inks deal to option its Silaskaira property in Finland to Kinross Gold
Kinross initially purchased 6,853,500 common shares of the company by way of private placement in September 2017, thus acquiring 9.98% of the then-issued and outstanding common shares of the company. “Kinross has the right to maintain its pro-rata interest in the company for so long as it owns at least 5% of the issued and outstanding common shares of the company from time to time,” noted Aurion.
The Kinross private placement is expected to consist of the sale of a minimum of 1,669,769 common shares and a maximum of 1,881,542 common shares at a price of C$0.90 per share, with the final amount to be determined by the extent to which the Agents' option is exercised.
The company said that closing of each of the brokered offerings and the Kinross private placement is expected to occur on or about November 25, 2021; and is subject to receiving standard regulatory approvals from the TSX Venture Exchange.
“All securities issued in connection with the brokered offering and the Kinross private placement will be subject to a statutory four-month hold period,” said the company.
The securities to be offered under the Kinross private placement have not been, and will not be, registered under the US Securities Act and may not be offered or sold in the US.
Aurion acquires early-stage precious metals exploration opportunities and is making a Nordic gold play. It has a portfolio of properties in Finland, including its flagship Risti and Launi projects, as well as joint venture agreements with Kinross Gold, B2Gold Corp and Strategic Resources in the Nordic country.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactivea