Aurania Resources Ltd (CVE:ARU) will raise up to C$10 million to advance its portfolio of mineral properties in South America.
Funds raised will be directed towards exploration at the firm’s Lost Cities-Cutucu project in Ecuador as well as early stage exploration at its adjacent Peru properties.
Toronto-based Aurania recently started drilling on the highly prospective Tskenken N2 copper-silver target at Lost Cities-Cutucu and plans to start an additional drill program in southeastern Ecuador in the next few months.
READ: Aurania Resources confirms the extension of the Tirania-Shimpia target on the Lost CIties-Cutucu gold project in Ecuador
The firm announced Thursday it will sell 2.33 million units priced at $4.30 per unit for gross proceeds of $10,019,000. Each unit is comprised of one share and one-half warrant exercisable at C$5.50 for a two-year period following the closing date of the offering.
The deal is led by Cantor Fitzgerald Canada Corporation together with a syndicate of underwriters.
Aurania will grant Cantor Fitzgerald an overallotment option exercisable at the underwriter’s discretion to purchase an additional 15% of the number of offered units sold under the same terms of the financing. The underwriters will have the option to purchase up to an additional 349,500 units at the offering price. If the over-allotment option is exercised in full, the additional total gross proceeds to Aurania will be approximately C$1.5 million.
The explorer will also pay cash commission equal to 6% of the proceeds raised to the underwriters and broker warrants to purchase up to 6% of the number of offered units.
The deal is expected to close by October 14.
--Updated to include offering price and overallotment details--
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