VANCOUVER, BC, Feb. 22, 2021
/CNW/ - AUX Resources Corporation (TSXV: AUX) (OTC:
AUXRF) is pleased to announce that the private placement financing
announced on February 11,
2021("Placement") with Eric
Sprott and an existing strategic investor closed on
February 19, 2021. The
Placement consists of 11,188,889 units ("Units") at a price
of $0.225 per Unit for gross proceeds
of $2,517,500. Each Unit consists of
one common share ("Common Share") and one full common share
purchase warrant ("Warrant"). Each Warrant is exercisable
into one Common Share at a price of $0.40 per common share until February 19, 2023.
Mr. Sprott through 2176423 Ontario Ltd., a corporation which is
beneficially owned by him, acquired 8,888,889 Units pursuant to the
Private Placement for total consideration of $2,000,000. Subsequent to the Private Placement,
Mr. Sprott beneficially owns or controls 8,888,889 Common Shares of
the Company and 8,888,889 Warrants representing 16.4% of the issued
and outstanding Common Shares of the Company on a non-diluted
basis, and 28.2% of the issued and outstanding Shares of the
Company on a partially diluted basis, assuming exercise of the
Warrants acquired hereunder and forming part of the Units. Prior to
the Financing, Mr. Sprott did not beneficially own or control any
securities of the Company.
The Units were acquired by Mr. Sprott for investment purposes
and with a long-term view of the investment. Mr. Sprott may acquire
additional securities of AUX either on the open market or through
private acquisitions or sell securities of AUX either on the open
market or through private dispositions in the future, depending on
market conditions, reformulation of plans and/or other relevant
factors.
A copy of 2176423 Ontario Ltd.'s early warning report will
appear on AUX's profile on SEDAR and may also be obtained by
calling Mr. Sprott's office at (416) 945-3294 (200 Bay Street,
Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
A finder's fee of $40,000 and
46,000 Units was paid. Proceeds will be used primarily to
fund exploration on AUX's projects and for general working
capital. The Common Shares and Warrants issued in the
Placement are subject to a statutory hold period expiring on
June 20, 2021.
About AUX Resources
AUX holds more than 27,000 hectares of strategic claims in the
Stewart Mining Camp in the Golden Triangle of British Columbia, which is among the world's
most prolific mineralized districts, including the high-grade gold
Georgia Project centred on the past-producing Georgia River Mine.
The Georgia River Mine, which last operated in 1939 with a head
grade of 22.6 g/t gold, contains 1.2 kilometres of underground
access on three levels. AUX is actively consolidating the Stewart
Mining Camp.
For further information please see www.auxrc.com
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
AUX 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 AUX Resources Corporation
