OTTAWA, ONTARIO--(Marketwired - Feb. 1, 2017) - Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company") announces that it has closed the second and final tranche of its non-brokered private placement of units raising aggregate proceeds of $500,000 in both tranches (the "Offering"). A total of 14,285,714 units were issued to investors at $0.035 per unit.
Each unit consisted of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.05 per share for a period of 36 months following the dates of issuance ("Warrants").
In connection with both tranches of the Offering, the Company has paid eligible finders cash commissions in the amount of $11,071 being 8% of the aggregate proceeds from the sale of units to purchasers introduced by the finders as well as issued an aggregate of 316,309 compensation options (each a "Compensation Option"), which is equal to 8% of the number of units sold to purchasers introduced by the finders. Each Compensation Option entitles the finder to acquire a unit (comprising a common share and a Warrant) at an exercise price of $0.05 and is exercisable for 36 months following the dates of issuance.
The aggregate proceeds raised under the Offering will be used for general corporate costs, working capital purposes and for concession fee costs related to the Company's Taviche Mexican silver property. No more than 25 percent of the proceeds from the Offering will be paid by way of fees or salary to Company management. No other payments will be made to related parties from the proceeds of the Offering.
The Offering is subject to final acceptance of the TSX Venture Exchange. All securities issued under the Offering are subject to a statutory hold period until May 17, 2017 (tranche 1) and June 1, 2017 (tranche 2).
The offered securities will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of the Company in the United States.
Greyhound Project, Spring Drill Program
Noteworthy is the fact that a significant drill program will be initiated in the spring of 2017 by Agnico Eagle Mines Ltd. ("Agnico Eagle") on the Company's Greyhound project in Nunavut. Agnico Eagle will cover all costs of drilling and associated work such that none of the Offering proceeds is required for exploration of the Greyhound project. Drilling will follow up on 2016 results where mineralization of 6.41 g/t gold was intersected over 1.5 metres at the bottom of a drill hole at a vertical depth of approximately 137 metres. This gold intercept lies within a quartz-stockwork zone of 15 metres of core length. The potential for success of future work following up on the discovery of high-grade gold and silver boulders is exciting. This will be the third drill program on the project conducted by Agnico Eagle. The core Greyhound project claims have been converted to a mining lease and all permits required to initiate drilling are in place.
About Aura Silver
Aura Silver is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Canada (100% owned Greyhound project under option to Agnico Eagle Mines Ltd.) and in Oaxaca, Mexico (100% owned Taviche project). Aura Silver has 128,116,558 common shares outstanding (including those issued in the first and second tranches of the Offering).
Mr. Paul Pitman, B.Sc., P.Geo. is a qualified person as defined by NI 43-101 and has reviewed and approved the technical contents of this press release regarding the Greyhound and Taviche projects.
This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, the private placement financing activities of the Company, plans and references to the Company's future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR at www.sedar.com. Aura Silver does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events 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.