Aurania Announces Closing of First Tranche of Strategic Financing
TSX-V: ARU
NR 2020-10
AURANIA ANNOUNCES CLOSING OF FIRST TRANCHE OF STRATEGIC FINANCING
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Toronto, Ontario, February 28, 2020 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF)
(Frankfurt: 20Q) (“Aurania” or the “Company”) is pleased to announced that it has closed the first
tranche (the “First Tranche”) of the private placement announced on February 19, 2020 for gross proceeds
of C$1,469,369.20, and in addition, has received executed subscription agreements for approximately
$4.7M which is expected to close in a second tranche next week.
Details of the Private Placement
On February 19, 2020, the Company announced a non-brokered private placement (see news release dated
February 19, 2020) for units of the Company (the “ Units”) at a price of C$3.10 per Unit, for total gross
proceeds of up to C$8,000,000 (the “Offering”). Each Unit consist of one common share of the Company
(a “ Common Share ”) and one -half of a Common Share purchase warrant ( each whole warrant a
“Warrant”). Each whole Warrant entitles the holder to purchase one Common Share at an exercise price
of C$4.25 for a period of 18 months following closing of the Offering. The Offering includes an over -
allotment option, allowing the Company to issue up to an addit ional 774,193 Units for additional gross
proceeds of up to C$2,400,000.
The First Tranche of the Offering consisted of 473,990 Units for the gross proceeds of C$1,469,369.20.
Eligible finders were paid C$ 604.00 in cash compensation and were issued 840 compensation warrants
(“Compensation Warrants ”) for their assistance. Each Compensation Warrant is exercisable into a
Common Share at C$4.25 per Common Share for 18 months from the date of issuance.
Use of Proceeds
The Company intends to use the net proceeds raised from the sale of the Units to advance exploration in
the Lost Cities – Cutucu Project and environs, including corporate social responsibility work required to
obtain access to concession areas, basic exploration including field work and sampling, the completion and
interpretation of geophysics surveys to refine specific target areas and to drill gold, silver and copper targets,
and for general working capital purposes.
Hold Period
The Units, the Compensation Warrants and underlying securities are subject to a customary four months
and a day hold period under applicable Canadian securities laws . The Units, the Compensation Warrants
and underlying securities have not been and will not be registered under the United States Securities Act of
1933, as amended, (the “U.S. Securities Act”) or applicable state securities laws and may not be offered or
sold in the United States or to U.S. Persons (as defined in the U.S. Securities Act) without registration, or
exemption from registration, under such laws. The Offering is subject to the requisite approval of the TSX
Venture Exchange.
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About Aurania
Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and
exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset,
The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the
Andes mountain range of southeastern Ecuador.
Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as
well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at https://twitter.com/auranialtd,
and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.
For further information, please contact:
Carolyn Muir
VP Investor Relations
Aurania Resources Ltd.
(416) 367-3200
Dr. Richard Spencer
President
Aurania Resources Ltd.
(416) 367-3200
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking information that involves substantial known and unknown risks
and uncertainties, most of which are beyond the control of Aurania. Forward -looking statements include
estimates and statements that describe Aurania’s future plans, objectives or goals, including wor ds to the
effect that Aurania or its management expects a stated condition or result to occur. Forward -looking
statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”,
“could”, “would”, “will”, or “plan”. Sinc e forward-looking statements are based on assumptions and
address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Although these statements are based on information currently available to Aurania, Aurania p rovides no
assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual events, results, performance, prospects and
opportunities to differ materially from those expressed or implied by such forward -looking information.
Forward looking information in this news release includes, but is not limited to, Aurania’s objectives, goals
or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio,
treasury, management team and enhanced capital markets profile, the estimation of mineral resources,
exploration and mine development plans, timing of the commencement of operations and estimates of
market conditions. Factors that could cause actual results to differ materially from such forward -looking
information include, but are not limited to, failure to identify mineral resources, failure to convert estimated
mineral resources to reserves, the inability to complete a feasibility study which recommends a production
decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain
required governmental, regulatory, environmental or other project approvals, political risks, inability to
fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of
financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations
in commodity prices, delays in the development of projects, capital and operating costs varying significantly
from estimates and the other risks involved in the mineral exploration and development industry, and those
risks set out in Aurania’s public documents filed on SEDAR. Although Aurania b elieves that the
assumptions and factors used in preparing the forward -looking information in this news release are
reasonable, undue reliance should not be placed on such information, which only applies as of the date of
this news release, and no assurance can be given that such events will occur in the disclosed time frames
or at all. Aurania disclaims any intention or obligation to update or revise any forward -looking
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information, whether as a result of new information, future events or otherwise, other than as required by
law.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be
any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful, including any of the securities in the United States of America. 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 within the United States or to, or for account or benefit
of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and
applicable state securities laws, or an exemption from such registration requirements is available.