#Mining
#Stock News: Aurcana (TSXV: $AUN.V) (OTC: $AUNFF) Announces C$15.223 in
Non-Brokered Private Placements With a Combination C$9.723 Million in Units and
C$5.5 Million in Secured Convertible Debentures; @AurcanaC
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia - October 21, 2021 (Investorideas.com Newswire) AURCANA SILVER CORPORATION ("Aurcana" or the "Company") (TSXV: AUN, OTCQX: AUNFF) is pleased to announce that it has signed subscriptions for a non-brokered private placement offering (the "Unit Private Placement") consisting of 13,891,072 Units (C$9,723,750.40 at a price of C$0.70 per Unit (the "Units").
Read this news, featuring AUN in full at https://www.investorideas.com/CO/AUN/news/2021/10211Private-Placements.asp
Each Unit will consist of one
common share of the Company and one full common share purchase warrant
("Warrant"), with each Warrant entitling the holder thereof to
purchase one common share at a price of C$0.90 for a period of 36 months
following the closing of the Private Placement, subject to adjustment upon
certain customary events.
The Company is also pleased to
announce that its wholly-owned subsidiary, Rio Grande Mining Co. ("Rio
Grande") has signed a subscription for a non-brokered private placement
offering (the "Debenture Private Placement") of a secured convertible
debenture (the "Debenture") in the sum of $5.5 Million.
The Debenture will have a
maturity date of four years from closing and shall bear interest at a rate of
5.75% per annum, payable semi-annually. The principal sum of the Debenture, or
any portion thereof, may be converted by the holder into shares of the Company
at a conversion price of C$0.74. Each C$1,000 face value of Debenture shall
come with 1,351.35 share purchase warrants ("Debenture Warrants"),
with each full Debenture Warrant entitling the holder to acquire one additional
common share in the capital of the Company at a price of C$0.95 per share for a
period of four years from closing.
Subject to specific carve outs,
the Debenture shall have first ranking security over the assets of Rio Grande
including a pledge over the shares of Shafter Properties Inc., a wholly-owned
subsidiary of the Company ("Shafter").
The Company will be closing each
of the Unit Private Placement and Debenture Private Placement subject to the
approval of the TSX Venture Exchange.
The net proceeds of both Private
Placements will provide additional contingency funding for the restart of the
Company's wholly-owned Revenue Virginius (RV) Mine as well as funding for
growth of the resource base at the RV Mine which may enable the Company to grow
future production volumes. Net proceeds will also be used for working capital
and general and administrative expenses including potential opportunities to
advance its wholly owned Shafter Project in light of the current silver price.
Finder's fees to third parties
may be paid in certain circumstances as part of the Unit Private Placement and
the Debenture Private Placement, as permitted by the policies of the TSX
Venture Exchange and in accordance with applicable securities laws. The
Debentures, Units, Conversion Shares, Warrants, Warrant Shares and any
securities issued in connection with any finder's fees, will be subject to a
hold period of four months and one day after the date of issuance thereof.
The Units and Debentures will be
issued on a private placement basis pursuant to applicable exemptions from
prospectus requirements under applicable securities laws. The common shares and
Warrants (and any common shares issued pursuant to the Warrants, as applicable)
forming the Units and the common shares and Debenture Warrants issued upon
conversion of the Debentures and any securities issued in connection therewith
will be subject to a statutory hold period of four months and one day from the
date of issuance of the Units and Debentures.
This press release shall not
constitute an offer to sell or the solicitation of an offer to buy the
securities in the United States nor shall there be any sale of the securities
in any jurisdiction in which such offer, solicitation or sale would be
unlawful. 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 in the United States
unless registered under the 1933 Act and any applicable securities laws of any
state of the United States or an applicable exemption from the registration
requirements is available.
ABOUT AURCANA SILVER CORPORATION
Aurcana Corporation owns the
Revenue-Virginius Mine, in Colorado, and the Shafter-Presidio Silver Project in
Texas, US. The primary resource at Shafter and Revenue-Virginius is silver.
Both are fully permitted for production.
ON BEHALF OF THE BOARD OF
DIRECTORS OF AURCANA SILVER CORPORATION
"Kevin
Drover"
President & CEO
For further information, visit
the website at www.aurcana.com or
contact:
Aurcana Corporation
850 - 789 West Pender Street
Vancouver, BC V6C 1H2
Phone: (604) 331-9333
Gary Lindsey, Corporate
Communications
Phone: (720)-273-6224
Email: gary@strata-star.com
CAUTIONARY NOTES
This press release contains
forward looking statements within the meaning of applicable securities laws.
The use of any of the words "anticipate", "plan",
"continue", "expect", "estimate",
"objective", "may", "will", "project",
"should", "predict", "potential" and similar
expressions are intended to identify forward looking statements. In particular,
this press release contains forward looking statements concerning, without
limitation, statements relating to the Private Placement (including with
respect to the timing of closing of the Private Placement). Although the
Company believes that the expectations and assumptions on which the forward
looking statements are based are reasonable, undue reliance should not be
placed on the forward looking statements because the Company cannot give any
assurance that they will prove correct. Since forward looking statements address
future events and conditions, they involve inherent assumptions, risks and
uncertainties. Actual results could differ materially from those currently
anticipated due to a number of assumptions, factors and risks. These
assumptions and risks include, but are not limited to, assumptions and risks
associated with the receipt of regulatory or shareholder approvals, and risks
related to the state of financial markets or future metals prices.
Management has provided the above
summary of risks and assumptions related to forward looking statements in this
press release in order to provide readers with a more comprehensive perspective
on the Company's future operations. The Company's actual results, performance
or achievement could differ materially from those expressed in, or implied by,
these forward looking statements and, accordingly, no assurance can be given
that any of the events anticipated by the forward looking statements will
transpire or occur, or if any of them do so, what benefits the Company will derive
from them. These forward looking statements are made as of the date of this
press release, and, other than as required by applicable securities laws, the
Company disclaims any intent or obligation to update publicly any forward
looking statements, whether as a result of new information, future events or
results 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.
Aurcana
Silver Corporation (TSXV: AUN) (OTC: AUNFF) is a featured Mining stock on
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