- Mining company Aurania Resources (ARU) has closed its public offering of company units, after raising C$11.5 million in total proceeds
- The company sold more than 2.6 million units through the offering, some of which resulted from the fully exercised over-allotment option
- Proceeds will primarily go towards exploration expenditures at Aurania’s Lost Cities-Cutucu Project in Ecuador and initial exploration in Peru
- The TSX Venture Exchange has conditionally approved the listing of around 1.33 million warrants underlying units issued through the offering
- Aurania Resources (ARU) is down 1.08 per cent and is currently trading for $3.66 per share
Mining company Aurania Resources (ARU) has closed its public offering of company units, after raising C$11.5 million in total proceeds.
The offering was conducted via an underwriting agreement dated October 1, between the company and a syndicate of underwriters. The syndicate’s lead underwriter and sole bookrunner was Cantor Fitzgerald Canada. Other members of the syndicate included Canaccord Genuity, Echelon Wealth Partners, Eight Capital, Haywood Securities, and Raymond James Ltd.
Through the offering, the company sold 2,679,500 of its units at a price of $4.30 each. Some of the units sold through the offering were the result of the full exercise of the over-allotment option.
Each unit contained one common share in Aurania Resources and one-half of a common share purchase warrant. One whole warrant allows the holder to buy one more common share in the company for $5.50, until October 29, 2022.
Aurania Resources agreed to pay the underwriters a fee of $690,312, and also issued 160,770 compensation warrants to them. Each compensation warrant is exercisable into a unit for $4.30, until October 29, 2022.
In related news, the TSX Venture Exchange (TSXV) has conditionally approved the listing of 1,339,747 warrants underlying units issued through the offering. These warrants will be listed for trading on the TSXV under the ticker code ARU.WT around November 2, 2020.
Aurania Resources will use the $11.5 million in proceeds from the offering for a variety of purposes. Primarily, the funds will go towards exploration expenditures at the company’s Lost Cities-Cutucu Project in Ecuador, and initial exploration in Peru.
Some money may also be used for working capital and general corporate purposes.
Aurania Resources (ARU) is down 1.08 per cent and is trading for $3.66 per share at 11:00am EDT.