Aurcana Announces Pending Closing of Previously Announced Non-Brokered Private Placement with Lead Order from Palisades Goldc...
27 January 2021 - 9:00PM
AURCANA SILVER CORPORATION ("
Aurcana" or the
"
Company") (TSXV: AUN) is pleased to announce
the closing of the non-brokered private placement offering (the
“
Private Placement”) announced on January 6, 2021,
subject to receipt of approval from the TSX Venture Exchange. The
Private Placement was significantly oversubscribed and Aurcana
elected to increase the size of the Private Placement to up to
34,500,000 Units (C$34,500,000) at a price of C$1.00 per Unit (the
“
Units”). Palisades Goldcorp Ltd. participated
with a lead order of C$5.0 million, marking Palisades Goldcorp’s
4th participation as an Aurcana lead order since February 2020.
Closing is expected to take place on January 27th or shortly
thereafter.
Each Unit will consist 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$1.25
for a period of 36 months from the date of issuance.
The net proceeds of the Private Placement will
provide contingency funding for the restart of the Company’s wholly
owned Revenue Virginius (RV) Mine and will also support the
examination of value creation opportunities on multiple fronts.
Areas of focus will include the growth of the resource base at the
RV Mine which may enable the Company to scale up future production
volumes, as well as opportunities for strategic consolidation in
the RV Mine district. Net proceeds will also be used for working
capital and general and administrative expenses, including but not
limited to potential opportunities to accelerate its wholly owned
Shafter Project.
Finder’s fees of 6% cash and 6% in finder’s
warrants will be issued as part of the Private Placement.
The Units will be issued on a private placement
basis pursuant to applicable exemptions from prospectus
requirements under applicable securities laws. The common shares
and Warrants (and any common shares issued pursuant to the
Warrants, as applicable) will be subject to a statutory hold period
of four months and one day from the date of issuance of the
Units.
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 resource at Shafter and Revenue-Virginius is
silver. Both are fully permitted for production.
About Palisades Goldcorp
Palisades Goldcorp is Canada's 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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