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Toronto, Ontario, May 19, 2023 – Aurania Resources Ltd. (TSXV: ARU; OTCQB: AUIAF; Frankfurt: 20Q) (“Aurania” or the “Company” – https://www.commodity-tv.com/ondemand/companies/profil/aurania-resourc …) is pleased to announce that the third and final installment (the “third installment“) of its non-brokered private placement financing of up to 10,869,565 units of the Company (the “units“) with gross proceeds of up to C$5,000,000 (the “Offer“). The offer and the closing of the previous tranches were announced on March 13, 2023, March 23, 2023 and April 25, 2023.
A total of 224,703 units were sold in the third tranche at a price of C$0.46 per unit (the “issue price“) sold for gross proceeds of $103,363.52. A total of 9,253,811 units were sold in the offering for aggregate gross proceeds of $4,256,753.20.
Each unit consists of one common share in the capital of the Company (a “Common stock“) and a warrant to purchase one common share (a “warrant“). Each Warrant will entitle the holder to purchase one common share (a “Warrant Share“) at an exercise price of C$0.75 per warrant share at any time up until the date thirty-six (36) months after the closing date of the relevant tranche of the Offering.
The offering is subject to certain conditions, including but not limited to receipt of all necessary approvals, including TSXV and securities regulatory approvals. All securities issued and issuable in connection with the offering will be subject to a hold period of four months plus one day from the date of issue.
The Company used the net proceeds from the first and second tranches to pay concession fees and general and administrative expenses. The Company expects to use the net proceeds from the third tranche for general working capital purposes.
dr Keith Barron, the Company’s Chief Executive Officer, President, Director, Promoter and a significant shareholder, subscribed for a total of 7,413,236 units in the offering. Mr. Barron’s participation in the Offering constitutes a “Related Party Transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). The Company relies on an exemption from the formal valuation and approval requirements for minority shareholders of MI 61-101 under Section 5.5(a) and Section 5.7(1)(a) because the fair market value of the insider’s interest is not is more than 25% of the company’s market capitalization.