Aurion Resources Ltd.

October 09, 2009 18:39 ET

Aurion Amends Terms to Offering, Appoints Director and Officer and Grants Options

VANCOUVER, BRITISH COLUMBIA--(Marketwire – Oct. 9, 2009) - Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to report that it has increased the size of its previously announced non-brokered private placement (the "Offering") to 7 million units ("Units") at a price of CDN$0.15 per Unit to raise aggregate gross proceeds of CDN$1,050,000. Each Unit will consist of one common share (a "Common Share") and one share purchase warrant (a "Warrant") of Aurion. Aurion also reports that it has amended the terms of the Warrants. Each whole Warrant will entitle the holder thereof to acquire one additional Common Share for a period of 36 months from the date of issuance at an exercise price of CDN$0.25 per Warrant. The Warrants are subject to an acceleration clause such that in the event the closing price of the common shares of Aurion on the TSX Venture Exchange (the "Exchange") is greater than C$0.40 for 30 consecutive trading days at any time after four months after the date of issuance of the Warrants, Aurion will be entitled to accelerate the Warrants upon 21 business days' prior notice and the Warrants will then expire on the 21st calendar day after the date of the notice unless exercised by the holder prior to such date.

All securities issued under the Offering will be subject to a four month hold period from the date of issue. The proceeds of the Offering will used for advancing Aurion's mineral projects and for general working capital. The Offering is subject to final documentation and approval of the Exchange.

The Corporation is further pleased to announce that, subject to Exchange approval, it has appointed Brad J. Mercer to the board of directors of the Corporation and George Smith to the position of Vice President, Exploration. In connection with these appointments, the Corporation has also granted an aggregate of 125,000 incentive stock options pursuant to its Stock Option Plan at the exercise price of $0.25 each for a term of five years.

Brad Mercer currently leads the Canadian exploration team for Capstone Mining Corp., as VP Exploration, which has been credited with discovering the Area 2, Area 118 and Copper Keel high grade, copper-gold deposits at the Minto mine in the Yukon. Mr. Mercer's most recent discovery - Minto North - located approximately 600m north of the "main" Minto deposit. For the past 24 years, Mr. Mercer has managed mineral exploration programs, conducted project evaluations and participated in feasibility work for both large and small mineral exploration companies, including U.S. Borax and Chemical Corp., A.C.A. Howe Inc., Royal Oak Mines Ltd. and Miramar Mining Corporation. His work is focused in the Americas taking him from Greenland to Patagonia where he has enjoyed the success leading teams that have opened up new exploration potential and made new discoveries on properties that were previously considered well explored. In addition to successes at the Minto Project in the Yukon, Mr. Mercer is credited with the discovery of the Moly Brook molybdenum deposit and the Unknown Brook gold deposit, both located in Newfoundland. Mr. Mercer graduated from Memorial University of Newfoundland in 1984 with a Bachelor of Earth Science and he is a Professional Geoscientist currently registered with the Association of Professional Engineers, Geologists and Geophysicists of the Northwest Territories. Mr. Mercer is also a member of the board of directors of Northern Tiger Resources.

George Smith has more than 30 years of minerals exploration experience for gold, base metals and platinum group metals in a variety of environments. He has worked in North and South America, Europe and Asia as an employee and consultant to Anaconda Mining Inc., BHP Billiton Ltd., Gold Fields Ltd. and Newmont Mining Corp. among others. With Anaconda, he was involved in the initial resource definition at the Stillwater Pd-Pt mine in Montana, and the discovery of mineralization at the La Choya gold mine in Sonora, Mexico. He has managed and participated in many exploration and drilling programs in remote areas. He has consulted on property evaluations, controls on mineralization, structural geology, exploration strategies and data management to BHP, Gold Fields, Newmont and Golden Star among others. He built the exploration team in Ecuador for Cornerstone leading to discovery of several epithermal gold properties and successful joint venture of a recon program with Newmont. Most recently, he designed and led the generative program around the Camino Rojo gold deposit, Mexico for Silver Standard.

About Aurion

Aurion completed its Initial Public Offering (IPO) in October 2008, during the global financial crisis, to pursue emerging resource opportunities in the ensuing environment. It currently has only 5,000,100 shares issued and outstanding and approximately $400,000 cash in its treasury. It recently announced the acquisition of two gold-silver projects in Mexico. Its strategy is to advance its projects to a stage which will attract potential joint venture partners. Aurion continues to evaluate other gold-silver projects for potential acquisition in Mexico and globally.

Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, is the Qualified Person as defined by National Instrument 43-101, and is responsible for the preparation of this release.

All dollars are in US currency unless otherwise stated.

Forward-Looking Statement

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Companies' current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the Offering. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Aurion. The material factors and assumptions include Aurion being able to obtain the necessary director and regulatory approvals to the Offering. Risk Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: the timing and conditions imposed by the Exchange that prevent the Offering from occurring and changes in regulatory regulation. Aurion cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and Aurion is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

On behalf of the Board,

Michael Basha, President & CEO

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.

Contact Information

  • Aurion Resources Ltd.
    Mike Basha
    (709) 699-8300
    Aurion Resources Ltd.
    Richard Graham
    (604) 488-8717