- Exploration company, Aura Resources (AUU) has increased the maximum amount of its private placement, due to significant demand from investors
- The company’s non-brokered private placement will now raise up to C$1.5 million, by issuing up to 25 million units
- Aura Resources will use the proceeds at its projects in Arizona and Nevada, and for working capital and general corporate purposes
- Completion of the offering is also a prerequisite for closing the company’s acquisition of Territory Metals
- Aura Resources (AUU) remains unchanged and is currently trading at eight cents per share
Exploration company, Aura Resources (AUU) has increased the maximum amount of its private placement, due to significant demand from investors.
The company’s non-brokered private placement financing can now raise up to C$1.5 million in gross proceeds. This allows for the issuance of 25 million shares at six cents per unit.
The placement also has a minimum of $500,000 in gross proceeds, comprising 8.33 million units at six cents each. Each unit from the offering consists of one common share in Aura Resources, plus one-half of common share purchase warrant.
One whole warrant allows the holder to buy a common company share for 10 cents, within 24 months of the issuance date. Any securities which are issued through the placement will be subject to a hold period of four months and one day from the issuance date.
In addition to raising the maximum proceeds amount, Aura Resources has also revised the offering’s closing date to around July 24, 2020. The offering as a whole is still subject to approval from the TSX Venture Exchange.
The proceeds from the private placement financing will go towards the company’s exploration expenditures. Specifically, it will finance activities at Aura’s Gold Chain project in Arizona, and its Tip Top Gold project and Jefferson Canyon project in Nevada.
Aura Resources will also likely use some of the funds for working capital and general corporate purposes. Most importantly though, the completion of the offering is a prerequisite condition for closing the company’s acquisition of Territory Metals.
Aura Resources (AUU) remains unchanged and is trading at eight cents per share at 2:55pm EDT.