Aura Announces New Corporate Strategy, Share Consolidation and Name Change
Aura Announces New Corporate Strategy, Share
Consolidation and Name Change
Ottawa, Ontario--(Newsfile Corp. - October 24, 2018) -
Aura Silver Resources (TSXV: AUU) ("Aura" or the "Company")
announces that it is in the process of implementing
a new corporate strategy which is intended to address both the internal and
external challenges to Aura's ability to create value for its shareholders.
Aura believes that both of its historical projects,
Greyhound in Nunavut, Canada and Taviche in Oaxaca, Mexico are projects of merit. The Greyhound project is being explored
by Agnico Eagle via a joint venture which has now been in place for over four years. Agnico Eagle's infrastructure at their
Meadowbank mine, located 32 km north of Greyhound, allows for methodical exploration using their in-house knowledge in
addition to significant cost advantages that, owing to the short exploration season and logistical challenges of operating in the
north, would be difficult for any other company to achieve. A summary of the 2018 exploration program undertaken by Agnico
Eagle is expected shortly.
Robert Johansing, President and CEO of Aura, stated,
"Both Aura and Agnico Eagle remain
committed to the Greyhound project and we are pleased that Agnico Eagle continues to invest in this prospective venture
.
While Aura continues to hold its interest in the Greyhound project the emphasis of our new corporate strategy is to add new
projects where Aura will be able to have direct input and control over exploration programs and their advancement".
Aura's Taviche project, in Oaxaca, Mexico, is another solid exploration project.
The Company continues to believe that deeper
drilling is required and that the currently identified gold and silver mineralization is a distal manifestation of a larger, primary
target. Over the past several years, Aura has dedicated significant financial resources to maintain its land position and
corporate status in Mexico but has not been able to advance the exploration program required at Taviche due to funding
limitations.
Aura is now aggressively pursuing a joint venture partner for the Taviche project to ensure that Aura can benefit from
its achievements and investment in past exploration programs at Taviche. Aura anticipates providing an update on joint venture
developments when arrangements are finalized.
Upon recently accepting the position of President and CEO of Aura, Robert Johansing stated,
"A shift in Aura's direction is
necessary. We know that our Greyhound project is in good hands and
Taviche
needs a partner to take the project to the next
level of discovery. Aura's new strategy will focus on adding projects in other jurisdictions where we can maximize the
proportion of our investments to be spent on exploration in order to maximize potential value creation for our shareholders".
As a first step in this strategy, on July 30, 2018, Aura announced that it had acquired the Gold Chain project in western Arizona
(see PR#18-09). Aura believes this project deserves immediate attention because the prospective structural environment is
extensive, the gold horizon is shallow and the logistics are good.
A recent review of the historical data has allowed Aura to
define the initial targets and the permitting process for drilling will commence shortly. Additionally, Aura is advancing discussions
on other new projects with the objective of securing opportunities where the Company can add value to projects with existing
exploration potential.
Over the past several years Aura has conducted three small financings each at less than $0.05, effectively to maintain its
existence and property holdings.
Robert Johansing, President and CEO stated,
"At our current share price and with current
market conditions we do not believe that continued financing at less than $0.05 will allow us to achieve the objectives of our
new corporate strategy. We want to ensure we are in a position to raise sufficient levels of funding at reasonable dilution levels
to support robust exploration programs at new projects where there is
potential to create value within reasonable timeframes.
For these reasons, Aura proposes a consolidation of its outstanding shares but believes this will represent a 're-start' and not
a 'start over'. Aura currently has three properties of merit, is active with efforts to acquire additional projects and anticipates
being able to provide updates on both existing and potential new projects in the near-term."
The Company proposes to consolidate its issued and outstanding common share capital on the basis of five (5) pre-
consolidation shares for one (1) post-consolidation share.
Aura currently has 137,450,558 common shares outstanding.
Upon
completion of the consolidation, the Company is expected to have 27,490,112 issued and outstanding common shares.
No
fractional shares will be issued with any fraction of a share rounded up to the nearest whole number if 0.5 or greater and down to
the nearest whole number if less than 0.5 of a share.
In addition, the Company proposes to change its name in connection with
the consolidation to "Aura Resources Inc.".
The Company's CUSIP and ISIN numbers will also change.
The Company's Board of Directors has determined the share consolidation will assist the Company in obtaining equity financing
in order to execute its new corporate strategy as outlined above.
The share consolidation and name change are subject to
shareholder approval at a special meeting of shareholders to be held on November 15, 2018 in addition to the approval of the
TSX Venture Exchange.
Shareholders of record on October 9, 2018 are entitled to vote at the special meeting and will receive
management's proxy circular and related materials.
These materials are also available under the Company's profile at
www.sedar.com
.
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.
About Aura
Aura is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in
North America including: in Nunavut, Canada (45.7% interest in the Greyhound project under operation by our partner, Agnico
Eagle); in Oaxaca, Mexico (100% owned Taviche project); and, in Arizona, USA (the Gold Chain project subject to option to earn
a 100% interest). Aura has 137,450,558 common shares outstanding.
For further information regarding this press release contact:
Robert Johansing, President and CEO at (805) 455-4775 or
by e-mail at
. Aura's web site is located at
www.aurasilver.com
.
FORWARD-LOOKING STATEMENTS:
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, share consolidation, 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 Silver 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.