TSX V: AUX
VANCOUVER, BC, June 17, 2020 /CNW/ - Auramex Resource
Corp. ("Auramex") (TSX.V: AUX) is pleased to
announce that due to strong investor demand, it has increased its
previously announced non-brokered private placement which now
consists of (i) 10,639,600 Units ("Unit") at a price of
C$0.25 per Unit (the "NFT Unit
Offering"); (ii) 6,133,667 Common Shares ("Common
Share") at a price of C$0.30 per
Common Share (the "FT Offering") and (iii) 4,054,054 Units
at a price of C$0.37 per Unit (the
"Charity FT Unit Offering" and together with the NFT
Unit Offering and FT Offering, the "Offering") for gross
aggregate proceeds of up to $6
million.
Auramex will consolidate (the "Consolidation") all of its
outstanding Common Shares on the basis of five (5)
pre-Consolidation Common Shares for one (1) post-Consolidation
Common Share. The record and effective date ("Effective
Date") of the consolidation will be announced shortly. Auramex
currently has 57,628,899 Common Shares issued and outstanding. As
at the Effective Date, Auramex will have approximately 11,525,780
Common Shares issued and outstanding. Common Shares issued
under the Offering will be post-Consolidation.
Each Unit will be comprised of one post-Consolidation Common
Share and one-half of one Common Share purchase warrant (each whole
warrant, "Warrant"). Each Warrant shall be exercisable to
acquire one Common Share ("Warrant Share") at a price of
$0.40 per Warrant Share for a period
of 24 months from the closing of the Offering. If the closing price
of the Common Shares is at a price equal to or greater than
$0.55 for a period of 10 consecutive
trading days, Auramex will have the right to accelerate the expiry
date of the warrants by giving notice, via a new release, to the
holders of the Warrants that the Warrants will expire on the date
that is 30 days after the issuance of said news release.
Common Shares issued under the FT Offering and Charity FT Unit
Offering qualify as 'flow through shares' ("Flow Through
Shares"). The gross proceeds from the FT Offering and
Charity FT Unit Offering will be used to incur 'Canadian
exploration expenses' that will qualify as 'flow through mining
expenditures' as those terms are defined in the Income Tax
Act which will be renounced to the initial purchasers of the
Flow Through Shares.
The net proceeds of the Offering will be used for exploration,
including drilling the Georgia River high-grade gold target, and
general working capital purposes. A Finder's Fee of 6% will
be payable in cash or Units on a portion of the Offering. Closing
of the Offering is subject to approval of the TSX Venture
Exchange. Securities issued in the Offering are subject to a
statutory hold period of four months.
About Georgia River
The past-producing Georgia River high-grade gold mine, which
last operated in 1939 contains 1.2 kilometres of underground access
on three levels and is located just 16 kilometres south of
Stewart, BC. Georgia River
was explored from the 1970s by several companies with the intent of
restarting the mine, but this historic work only focused on the
area hosting the existing mine workings, which appears to be
peripheral to the core of a much larger hydrothermal system. Only a
small part of this massive hydrothermal system was worked by the
past producing mine.
Work by Auramex over the past few field seasons has generated
compelling evidence in support of a large intrusion-related gold
target adjacent to the area of previous work. The target zone
is marked by anomalous surficial samples, the cross-cutting
regional Sovereign Fault, a coincident conductivity high, and an
Early Jurassic intrusion belonging to the Texas Creek Plutonic
Suite – a crucial component to large gold deposits in the Golden
Triangle.
The regional-scale Hume Creek deformation zone provided the
"plumbing system" for hydrothermal fluids related to the intrusion.
Surface samples spanning more than a square kilometre carry
gold values in excess of a gram per tonne, demonstrating the
extensive nature of the system. Field crews are finalizing
mobilization plans, and contractors are being selected to
facilitate the 2020 field program which will involve drill testing
the newly defined high-grade gold target.
The technical disclosures in this release has been read and
approved by Dr. Paul Metcalfe, PhD,
P.Geo., a qualified person as defined in National Instrument
43-101.
About Auramex Resource Corp.
Auramex is aggressively exploring and continues to consolidate a
large and highly prospective property portfolio in the Stewart
Mining Camp, at the southern end of the prolific Golden Triangle in
British Columbia. Auramex's
extensive knowledge and experience in the Golden Triangle aims to
maximize shareholder value by deploying a systematic and
comprehensive exploration approach, that fuses "traditional" and
emerging, cutting-edge exploration techniques.
On behalf of the Board of Directors:
Lawrence
Roulston
President & CEO
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. This news release includes
forward-looking statements that are subject to risks and
uncertainties. All statements within, other than statements
of historical fact, are to be considered forward looking. Although
the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include market prices, exploitation and exploration successes,
continued availability of capital and financing, and general
economic, market or business conditions and regulatory and
administrative approvals, processes and filing requirements.
There can be no assurances that such statements will prove accurate
and, therefore, readers are advised to rely on their own evaluation
of such uncertainties. We do not assume any obligation to
update any forward-looking statements.
SOURCE Auramex Resource Corp.
