TSX V: AUX
VANCOUVER, BC, July 6, 2020 /CNW/ - Auramex Resource
Corp. ("AUX") (TSXV: AUX) is pleased to announce
that the private placement announced on June
8, 2020 and upsized on June 17,
2020 has closed and consists of (i) 10,099,000 Units
("Unit") at a price of C$0.25
per Unit (the "NFT Unit Offering"); (ii) 4,783,667 Common
Shares ("Common Share") at a price of C$0.30 per Common Share (the "FT
Offering") and (iii) 4,054,056 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
approximately $5.5 million. Post
financing AUX has 30,795,253 Common Shares issued and
outstanding.
Each Unit will be comprised of one 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 until July 6, 2022. 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 high-grade gold target, and general
working capital purposes. A Finder's Fee of 6% was paid in
cash or Units on a portion of the Offering. Securities issued
in the Offering are subject to a statutory hold period expiring on
November 7, 2020.
About Auramex Resource Corp.
AUX is exploring the past-producing Georgia River high-grade gold mine located 16
kilometres south of Stewart, BC in
the prolific Golden Triangle. 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. Work by AUX
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. Field crews have mobilized, and
contractors have been selected to facilitate the 2020 field program
which will involve drill testing the newly defined high-grade gold
target.
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.
