Aurelius Minerals Inc (TSX-V:AUL, OTCQB:AURQF) told investors it has raised gross proceeds of $1,159,700 through a non-brokered private placement and has appointed John Carter to its board of directors.
The gold exploration company said it placed 2,418,611 flow-through shares at $0.36 each, raising $870,700. An additional 963,333 common share units were issued at $0.30 each for aggregate gross proceeds of $289,000.
Each common share unit includes one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder to acquire a common share for $0.40 for 24 months following the closing of the offering, Aurelius said.
READ: Aurelius Minerals intersects high-grade gold at its Aureus East project in Nova Scotia
The company said the net proceeds from the offering of the common share units will be used for corporate and general working capital purposes while the proceeds of the offering of flow-through shares will be used to fund Canadian exploration expenditures at the Aureus Gold projects located in Nova Scotia.
Announcing Halifax-based Carter’s appointment to its board at the company’s annual general meeting (AGM), president and CEO Mark Ashcroft said he brings local representation to the board.
Gilles Arseneau has also been appointed as chairman, replacing Randy Turner, who has retired after serving on the board since 2007.
"I would like to express our sincere appreciation to Randy for his guidance and contributions since the formation of the company," Ashcroft said.
In connection with the private placement, Aurelius said it expects to issue approximately 423,000 common shares at $0.30 per share to Sprott Private Resource Lending after it exercised its participation right to maintain its percentage shareholding of Aurelius. The value of the participation right exercise will be credited towards the First Deferred Payment in connection with the acquisition of the Aureus Gold assets, it added.
"We are very excited to enter 2022, as we build upon our recently completed Phase 2 exploration program, which brought our total meters drilled on the project since September 2020, to over 21,000 meters of underground and surface diamond drilling,” Ashcroft told the AGM.
“This has resulted in the discovery of multiple new gold zones at the Aureus East property. We are excited to build on these successes as we move closer to our updated resource estimate at Aureus East in early 2022."
Aurelius Minerals is focused on advancing its renamed Aureus gold properties, including Aureus East and West, the Tangier gold project, and the Forest Hill gold project in Nova Scotia.
It is also advancing two district-scale gold projects in the Abitibi Greenstone Belt in Ontario. These are the 968-hectare Mikwam property and the 12,425-hectare Lipton property on the Lower Detour Trend.
Contact the author at stephen.gunnion@proactiveinvestors.com