Aura Silver Resources Inc.

Aura Silver Resources Inc.

October 15, 2009 08:30 ET

Aura Silver Announces Flow-Through Private Placement Financing to Fund Greyhound VTEM Survey Leading to Phase I Drilling

OTTAWA, ONTARIO--(Marketwire - Oct. 15, 2009) - Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company") announces that it intends to raise up to a total of $300,000 by way of non-brokered private placement of flow-through common shares at $0.32 per share. The closing of the offering will be completed in two tranches. The offering of flow-through common shares will give rise to the issuance of a maximum of 937,500 common shares. The offering is subject to TSX Venture Exchange acceptance.

The first tranche of the private placement offering has closed with the issuance of 312,500 flow-through common shares for proceeds of $100,000. The flow-through common shares issued pursuant to this private placement are subject to a four month hold period expiring on February 16, 2010.

Finders' fees may be payable in connection with this private placement in accordance with TSX Venture Exchange policy.

Aura Silver intends to use the proceeds of this offering to fund costs with respect to a helicopter borne VTEM geophysical survey and related interpretation for its Greyhound, Nunavut project. The flow-through share proceeds will be used to incur these Canadian exploration expenses prior to December 31, 2010 at the latest. The Company intends to renounce the qualifying expenditures to subscribers for the year ended December 31, 2009.

As previously reported (see Press Release #09-03, dated May 26, 2009) analysis of Greyhound project airborne geophysical data indicates that there are numerous anomalies over a strike length of 25 kilometers, with specific linear targets, each at least 800 meters in length. During August 2008, Company geologists prospected the Greyhound property with the intention of supplementing past sampling in order to better define exploration targets. The results were successful with samples that contain up to 4.1% copper (Cu), 13.4% zinc (Zn), 8.2% lead (Pb), 2,700 grams per tonne (g/t) silver (Ag) and 28g/t gold (Au). Additional data on samples obtained later indicate that the massive sulfide occurrence on the south-central area of the property contains up to 18.5% Zn and 9.2% Cu. Furthermore, samples collected in 1998 contained 1,480 and 3,080 g/t silver. It is the view of the Company's geologists that Greyhound contains the elements of a classic volcanogenic massive sulphide (VMS) district as well as an orogenic gold system.

During the fall of 2009, the Company will fly a high precision VTEM helicopter borne electro-magnetic survey to confirm drill targets. Phase I drilling is proposed to initiate in the spring of 2010.

Dr. James M. Franklin, P. Geo. is Aura Silver's qualified person (as defined by National Instrument 43-101) and has reviewed and approved the scientific and technical information in this press release.

About Aura Silver

Aura Silver is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Canada (Greyhound project) and in Oaxaca, Mexico with joint venture partner Intrepid Mines Limited (TSX:IAU). Aura Silver has 40,606,902 common shares outstanding.


This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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.

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