Aurelius Minerals Inc (TSX-V:AUL, OTCQB:AURQF) said it has closed a non-brokered private placement for aggregate gross proceeds of $974,967.
The private placement was composed of 1,560,500 flow-through (FT) units of the company with each unit comprised of one common FT share in the capital of the company and one-half of one common share purchase warrant on a non flow-through (NFT) basis, at a price of $0.33 each for gross proceeds of $514,965,
As well as 1,533,339 common share units of the company, with each comprised of one common share issued on a NFT basis and one half of one warrant, at a price of $0.30 per common share unit for gross proceeds of $460,002. Each warrant entitles the holder to acquire one common share at a price of $0.40 each for a period of twenty-four months following the closing of the offering.
In a statement, Mark N.J. Ashcroft, president and CEO of Aurelius commented: "We are pleased to have been able to attract significant investment interest ahead of next month's anticipated resource update. We now have the necessary funds to begin work on the next phase of our project. In Phase 2 of our drill program, we completed more than 12,000m (metres) of drilling and expect to have that data incorporated into our updated mineral resource estimate within the next few weeks. We would like to thank our existing shareholders for their further investment and also to welcome our new shareholders."
READ: Aurelius Minerals expects Aureus East resource update by early second quarter as it completes Phase 2 drilling
The company noted that Sprott Private Resource Lending (Collector) LP (SPRL) participated in the offering acquiring 833,334 common share units to hold 4,887,724 shares post-closing, including 57,854 shares being held on behalf of Natural Resources income Investing LP. This represents a holding of approximately 11.1% of Aurelius common shares on a non-diluted basis.
The securities issued through the offering are subject to a statutory four-month hold period expiring on July 31, 2022. The offering is subject to final acceptance of the TSX Venture Exchange.
The company said it expects to close two further tranches in early April for up to additional gross proceeds of $464,000 of FT units and up to additional gross proceeds of $135,000 of common share units. Up to a maximum total gross proceeds of $1,000,000 of FT units and $750,000 of common share units has been conditionally approved by the TSX Venture Exchange.
Aurelius also said it may pay a cash commission of 6% of the gross proceeds and 6% broker warrants exercisable into common shares of the corporation at a price of $0.30 per share any time from the closing date to the day that is 24 months from then on certain of these subscriptions. Details will be confirmed on closing of each tranche, it added.
The securities have not been and will not be registered under the United States Securities Act of 1933 as amended, or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of US persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.
The net proceeds from the common share unit offering will be used by the company for corporate and general working capital purposes, and an amount equal to the gross proceeds from the issuance of FT shares comprising the FT units under the FT offering will be used to incur or be deemed to incur eligible "Canadian exploration expenses" as defined under the Income Tax Act (Canada) related to the Aureus Gold projects located in Nova Scotia, on or before December 31, 2023.
The company will renounce to the purchasers of the FT units such Canadian exploration expenses with an effective date of not later than December 31, 2022.
Aurelius is a well-positioned gold exploration company focused on advancing its Aureus Gold Properties, including Aureus East and West, the Tangier Gold Project and the Forest Hill Gold Project located in Nova Scotia.
The company is also focused on advancing two district-scale gold projects in the Abitibi Greenstone Belt in Ontario, Canada, one of the world's most prolific mining districts; the 968-hectare Mikwam Property, in the Burntbush area on the Casa Berardi trend and the 12,425-hectare Lipton Property, on the Lower Detour Trend..
Contact the author at jon.hopkins@proactiveinvestors.com