Aurcana Announces Non-brokered Private Placement Of Up To C$6 Million In Units And Closing Of First Tranche For $5.298 Million
February 1, 2022
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Vancouver, BC – February 1, 2022 – Aurcana SILVER Corporation ("Aurcana" or the "Company") (TSXV: AUN) is pleased to announce a non-brokered private placement offering (the “Private Placement”) of up to C$6 Million, consisting of up to 17,142,857 Units at a price of C$0.35 per Unit (the “Units”), subject to the approval of the TSX Venture Exchange. The Company has closed the first tranche of 15,138,071 units for a total of $5,298,325. The second tranche will be closing in the near future.
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 C0.525 for a period of 36 months following the closing of the Private Placement, subject to adjustment upon certain customary events.
Kevin Drover, President and CEO of Aurcana, has participated in the private placement by acquiring 1,428,571 units for total consideration of $500,000.
The net proceeds of the Private Placement will provide 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.
The Units 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) will be subject to a statutory hold period of four months and one day from the date of issuance of the Units.
Finder’s fees to third parties may be paid in certain circumstances as part of the Private Placement, as permitted by the policies of the TSX Venture Exchange and in accordance with applicable securities laws.
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.
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