Aurion Resources (TSX-V:AU) Ltd told investors it has completed its previously announced fully marketed private placement and non-brokered private placement, raising aggregate proceeds of C$16.7 million.
The exploration company said it placed an aggregate of 16,666,667 common shares at C$0.90 each under the marketed private placement for aggregate gross proceeds of C$15,000,000, including the full exercise of the agent’s option.
The offering was led by Red Cloud Securities Inc, as lead agent and sole bookrunner, on behalf of a syndicate of agents including Cormark Securities Inc, Haywood Securities Inc and PI Financial Corp.
READ: Aurion upsizes brokered private placement to as much as C$13.5M
As payment for their services, Aurion said the agents received a cash commission equal to 6% of the gross proceeds of the offering, other than in respect of certain purchasers on a president's list, in which case such cash commission was reduced to 3%.
Additionally, the agents received broker warrants to purchase additional shares equal to 6% of the number of shares issued under the offering, other than those on the president's list, in which case the number of broker warrants was reduced to 3%. The warrants are exercisable at a price per common share equal to the issue price for 24 months from the closing of the offering, the company said.
Under the non-brokered financing, Aurion said it issued an aggregate of 1,881,500 common shares, also at C$0.90 each, for aggregate gross proceeds of C$1,693,350. The non-brokered financing was fully subscribed for by Kinross Gold Corporation (TSX:K), which exercised its pro-rata right granted pursuant to a prior financing to maintain a 9.98% interest in the issued and outstanding shares of the company.
Aurion said the net proceeds received from the offering and the non-brokered financing will be used for the exploration and advancement of its exploration properties in Finland and for general working capital purposes.
Aurion Resources (TSX-V:AU) is a Canadian exploration company that acquires early-stage precious metals exploration opportunities. 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 Finland
Contact the author at stephen.gunnion@proactiveinvestors.com