Ottawa, Ontario–(Newsfile Corp. – March 14, 2019) – Aura Resources Inc. (TSXV: AUU) (“Aura” or the “Company”) is pleased to provide an update on the progress of its corporate initiatives and announces the initiation of a private placement financing.
Management and Board of Director Changes Completed
During May and June of 2018, the Company announced changes in the executive management and board of directors of the Company. Mr. Robert Johansing, M.Sc. Econ. Geol., P. Geo., was appointed as President and Chief Executive Officer and a director of the Company. Mr. Johansing has over 40 years of experience as a mining and mineral exploration geologist. Following his appointment, Mr. Johansing and the board of directors completed an evaluation of the Company’s mineral property portfolio and overall strategy leading to the initiatives detailed below.
New Project Acquired – Gold Chain Project, Arizona
During July 2018, Aura acquired the Gold Chain project in western Arizona in order to diversify the Company’s mineral property portfolio. Since this time, Aura has since expanded its land position from 86 to 100 unpatented claims. The Company plans to commence field work in spring 2019 focusing on the known gold-bearing stockwork and breccia zones outlined in Press Release #18-09 (July 30, 2018).
Share Consolidation and Name Change Completed
During November 2018, the shareholders of the Company approved a name change to Aura Resources Inc. and consolidation of the common shares of the Company that has resulted in 27,490,128 common shares being outstanding. The share consolidation was implemented with the objectives of having the Company’s share price trade in a range above $0.05 per share and to offer a tight capital structure to prospective investors in the Company.
East Taviche Project, Mexico – Minaurum Gold New Operator
During January 2019, the Company entered into a definitive agreement with Minaurum Gold Inc. whereby Minaurum acquired an 80% interest in the Taviche, Mexico project. This transaction transfers operation of this exciting silver-gold bearing epithermal system to an experienced and well financed operator in Mexico (see Press Release #19-01; January 29, 2019) to ensure continued advancement of the project.
Greyhound Project, Nunavut – 2018 Program Results Lead to Upcoming Spring Drilling
Exploration continues at the Greyhound project in Nunavut where the Company’s partner Agnico Eagle continues to identify new drill targets (see Press Release #19-02, February 26, 2019). Highly conductive zones adjacent to high grade Zn-Cu boulders are prime targets for VMS discovery and a drill program is being planned to test targets as soon as spring weather conditions will permit.
Jefferson Canyon Project, Nevada – Due Diligence During Exclusivity Period Ongoing
On March 4, 2019, the Company announced a non-binding letter agreement relating to the Jefferson Canyon Au-Ag epithermal system in southern Nevada, Nye County (see Press Release #19-03; March 4, 2019) near the Round Mountain gold mine. The Company’s goal is to conduct a field visit as soon as snow clears in mid-April and to collect rock samples to confirm historical results. The Company anticipates analytical results will be available by mid-May allowing for the conclusion of due diligence on the property and completion of a definitive agreement on or before May 31, 2018.
Robert Johansing, President and CEO, states, “Since I joined the Company, considerable energy has gone into adding prospective new projects to Aura’s portfolio with a focus on some of the world’s most mining friendly jurisdictions. With both Agnico Eagle and Minaurum Gold advancing projects initially held by Aura, we are now focused on exploration in the western United States. I look forward to updating shareholders on our advancements during 2019.”
PRIVATE PLACEMENT FINANCING
The Company announces that it is undertaking a non-brokered private placement offering to raise gross proceeds of up to $500,000 at $0.05 per unit (the “Offering”). Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.07 per share for a period of 36 months following the date of issuance. Any securities issued under the Offering would be subject to a statutory hold period of four months and one day from the date of issuance. This Offering is subject to approval of the TSX Venture Exchange.
The Offering will be conducted by the Company utilizing the Existing Security Holder Prospectus Exemption under OSC Rule 45-501 Ontario Prospectus and Registration Exemptions and other provincial equivalents, except the Province of Newfoundland and Labrador, under Multilateral CSA Notice 45-313 Prospectus Exemption for Distributions to Existing Security Holders (collectively, the “Existing Security Holder Exemptions”) as well as the “accredited investor” exemption under National Instrument 45-106 Prospectus and Registration Exemptions and also other exemptions available to the Company.
The Company will make the Offering available to all shareholders of the Company as of March 13, 2019 (the “Record Date”) who are eligible to participate under the Existing Security Holder Exemptions and who have notified the Company by no later than April 8, 2019 at 5:00 pm (Eastern) of their intention to participate in the Offering. The Existing Security Holder Exemptions limit a shareholder to a maximum investment of $15,000 unless the shareholder certifies in the subscription agreement that he or she has obtained advice regarding the suitability of the investment from a registered investment dealer or otherwise qualifies to rely on another private placement exemption.
In the subscription agreement, shareholders will be required to certify the number of common shares of the Company held as of the record date and the total number of units they wish to subscribe for at the specified price of $0.05 per unit. Each existing shareholder on the record date will be entitled to purchase that number of units equal to at least their pro rata share based on the common shares owned on the record date, subject to a $2,500 minimum subscription. Any additional available units will be allocated by the Company based on subscriptions received and units available. Orders will be processed by the Company on a first come, first served basis such that it is possible that a subscription received from a shareholder may not be accepted by the Company if the Offering is over subscribed. Any person who becomes a shareholder of the Company after the Record Date shall not be entitled to participate in the Offering under the Existing Security Holders Exemptions.
The aggregate proceeds raised under the Offering will be used for exploration expenditures related to the Gold Chain project; completion of due diligence and potential exploration of the Jefferson Canyon project; and, for working capital and general corporate purposes.
It is anticipated that officers and directors of the Company will participate in the Offering. Aura may pay commissions to finders in Canada in connection with the Offering. Any finder fees paid would be in accordance with TSX Venture Exchange policies.
The offered securities will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of the Company in the United States.
Robert Johansing, M.Sc. Econ. Geol., P. Geo. is a qualified person as defined by NI 43-101 and has reviewed and approved the technical content of this press release.
Aura Resources Inc. is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Nunavut, Canada (43.54% interest in the Greyhound project under operation by our partner, Agnico Eagle Mines Limited), in Oaxaca, Mexico (Higo Blanco project recently optioned to Minaurum Gold Inc.) and in Arizona, USA (Gold Chain property). Aura has 27,490,128 common shares outstanding.
This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, the private placement financing activities of the Company, plans and references to the Company’s future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the ‘safe harbour’ provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company’s most recent annual MD&A and the Company’s continuous disclosure documents that can be found on SEDAR at www.sedar.com. Aura does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events 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.
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR
FOR DISSEMINATION TO U.S NEWS WIRE SERVICES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43397