Aurania Resources (TSXV:ARU) seeks $10M to fund exploration in South America

• Aurania Resources (ARU) is looking to raise more than C$10 million to fund exploration and development work at its projects in Ecuador and Peru
• The company intends to issue 2.33 million units at a price of $4.30 each, comprised of one common share and half of one common share purchase warrant
• Each whole warrant will be exercisable at a price of $5.50 per share for a period of 24 months
• The proceeds will be used to support the company’s current drill program at the Lost Cities Project in Ecuador, along with additional exploration work in Peru
• Aurania Resources (ARU) is currently steady at $5.18 per share

Aurania Resources (ARU) hopes to raise more than C$10 million to fund exploration and development work at its projects in Ecuador and Peru.

Under the terms of the placement, the Toronto-based company intends to issue 2.33 million units at a price of $4.30 each. These units will be comprised of one common share in Aurania and half of one common share purchase warrant.

Each whole warrant will entitle the holder to acquire an additional common share at a price of $5.50, exercisable over a period of 24 months from the date of issuance.

Cantor Fitzgerald Canada will lead a syndicate of underwriters, which includes Canaccord Genuity, Echelon Wealth Partners, Eight Capital, Haywood Securities and Raymond James.

An over-allotment option has been granted to these underwriters, allowing for the purchase of an additional 349,500 units within 30 days of the offer’s completion, representing potentially $1.5 million in additional proceeds.

According to today’s release, Aurania intends to use the funds to support ongoing exploration and development work at its Lost Cities Project in Peru, as well as for initial exploration activities in neighbouring Peru. A portion of the proceeds may also be used for working capital and general corporate purposes.

Last week, the company revealed that it had confirmed the extension of the Tiria-Shimpia silver-gold target, which is hosted within the Lost Cities Project.

The discovery covers a total strike length of 15 kilometres, and sits within a larger mineralised system that covers an area of 75 square kilometres. It remains open along trend, on the margin of an intensely magnetic feature interpreted to be a porphyry cluster.

Rock chip samples from boulders in the region returned grades of up to 710 grams per tonne of silver and 48 per cent zinc, while outcrop samples returned up to 356 grams per tonne of silver, 12.7 per cent zinc and 11 per cent lead.

Aurania Resources (ARU) is currently steady at $5.18 per share at 11:56am EDT.