Auramex Closes $5.5 Million Financing
Auramex Closes $5.5 Million Financing
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.
View original content:
http://www.newswire.ca/en/releases/archive/July2020/06/c6799.html
%SEDAR: 00005611E
For further information:
+1 604 914 2142, [email protected], www.auramex.com
CO: Auramex Resource Corp.
CNW 18:02e 06-JUL-20