Aurcana Announces Previously Announced Non-Brokered Private Placement Oversubscribed and Increased to C$12,245,700 First Tran...
21 July 2020 - 11:56AM
AURCANA CORPORATION ("
Aurcana" or the
"
Company") (TSXV: AUN) is pleased to announce
the previously announced (July 14, 2020) private placement offering
(the “
Private Placement”) of Units (as defined
below) is oversubscribed and, subject to TSX.V approval, increased
to 24,491,400 Units with gross proceeds of C$12,245,700. Aurcana
closed on the sale of 21,789,400 Units in the first tranche of the
Private Placement (the “
First Closing”) for gross
proceeds of C$10,894,000. Palisades Goldcorp Ltd, on behalf
of itself and a syndicate of strategic investors completed a lead
order of $2.0 million. This lead order is Palisades Goldcorp’s
third participation as an Aurcana lead order since February 2020.
The second and final closing is expected shortly.
Each Unit is priced at C$0.50
and consists of one common share of the Company and one full common
share purchase warrant (“Warrant”), with each
Warrant entitling the holder thereof to purchase one common share
at a price of C$0.75 for a period of 36 months following the
closing of the Private Placement, subject to adjustment upon
certain customary events.
The Company intends to use net proceeds of the
Private Placement to continue to execute the Company’s corporate
vision, previously announced on June 19, 2019 and posted on its
website www.aurcana.com, which is primarily focused on advancing
its wholly-owned Revenue-Virginius Silver Mine located in Ouray,
Colorado, as well as for working capital and general and
administrative expenses. In addition to supporting the
ongoing underground development in the Virginius North area of the
mine the net proceeds are expected to be targeted toward placing
orders for long lead time equipment and completing the
rehabilitation of the emergency escapeway to remove these items
from the critical path of the restart schedule, each of which will
also directly reduce future capital requirements to complete the
restart.
For the First Closing, the Company paid an
aggregate of C$485,520 in finder’s fees and issued an aggregate of
971,040 agent’s warrants, (“Agent’s Warrants”)
with each Agent’s Warrant entitling the holder thereof to purchase
one Common Share at a price of C$0.50 for a period of 36 months
from the date of issuance.
The Common Shares and the Warrants (and any
Common Shares issued pursuant to the Warrants, as applicable)
issued in the First Closing are subject to a statutory hold period
expiring on November 21, 2020.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy the securities in
the United States nor shall there be any sale of the securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
“1933 Act”), or any state securities laws and may
not be offered or sold in the United States unless registered under
the 1933 Act and any applicable securities laws of any state of the
United States or an applicable exemption from the registration
requirements is available.
ABOUT AURCANA CORPORATION
Aurcana Corporation owns the Revenue-Virginius
Mine, in Colorado, and the Shafter-Presidio Silver Project in
Texas, US. The primary mineral resource at Shafter and
Revenue-Virginius is silver. Both are fully permitted for
production.
About Palisades Goldcorp
Palisades Goldcorp is Canada's new resource
focused merchant bank. Palisades' management team has a
demonstrated track record of making money and is backed by many of
the industry's most notable financiers. With junior resource
equities valued at generational lows, management believes the
sector is on the cusp of a major bull market move. Palisades is
positioning itself with significant stakes in undervalued companies
and assets with the goal of generating superior returns.
ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION
“Kevin Drover” President & CEO
For further information, visit the website at www.aurcana.com or
contact:
Aurcana Corporation850 – 789 West Pender StreetVancouver, BC V6C
1H2Phone: (604) 331-9333
Gary Lindsey, Corporate CommunicationsPhone: (720)-273-6224
Email: gary@strata-star.com
CAUTIONARY NOTES
This press release contains forward looking
statements within the meaning of applicable securities laws. The
use of any of the words “anticipate”, “plan”, “continue”, “expect”,
“estimate”, “objective”, “may”, “will”, “project”, “should”,
“predict”, “potential” and similar expressions are intended to
identify forward looking statements. In particular, this press
release contains forward looking statements concerning, without
limitation, statements relating to the Private Placement (including
with respect to the timing of closing of the Private Placement).
Although the Company believes that the expectations and assumptions
on which the forward looking statements are based are reasonable,
undue reliance should not be placed on the forward looking
statements because the Company cannot give any assurance that they
will prove correct. Since forward looking statements address future
events and conditions, they involve inherent assumptions, risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of assumptions, factors and
risks. These assumptions and risks include, but are not limited to,
assumptions and risks associated with the receipt of regulatory or
shareholder approvals, and risks related to the state of financial
markets or future metals prices.
Management has provided the above summary of
risks and assumptions related to forward looking statements in this
press release in order to provide readers with a more comprehensive
perspective on the Company’s future operations. The Company’s
actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward looking
statements and, accordingly, no assurance can be given that any of
the events anticipated by the forward looking statements will
transpire or occur, or if any of them do so, what benefits the
Company will derive from them. These forward looking statements are
made as of the date of this press release, and, other than as
required by applicable securities laws, the Company disclaims any
intent or obligation to update publicly any forward looking
statements, whether as a result of new information, future events
or results or otherwise.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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