By Laura Lutz
Des Moines, April 10 - Aura Gold Inc. arranged a private placement of subscription receipts for C$70 million.
The company plans to sell 87.5 million subscription receipts at C$0.80 apiece. Each subscription receipt will be exchanged for one common share upon settlement of the company's acquisition of the Arapiraca project in Brazil.
If the acquisition has not closed 115 days after the settlement, 75% of the proceeds of the placement will be returned pro rata to each holder and 75% of each holder's subscription receipts will be canceled. In that case, the remaining 25% of the subscription receipts will be immediately exchanged for common shares.
The underwriters, a syndicate led by Canaccord Capital Corp., has a greenshoe for up to 37.5 million more subscription receipts. The greenshoe will be exercisable up to 48 hours before closing.
Proceeds will be used to advance the Arapiraca project, for exploration and development, and for working capital.
Settlement is expected on May 1.
Aura is a Toronto-based mineral exploration company.
| Issuer: | Aura Gold Inc.
|
| Issue: | Subscription receipts exchangeable for common shares
|
| Amount: | C$70 million
|
| Subscription receipts: | 87.5 million
|
| Greenshoe: | 37.5 million subscription receipts
|
| Price: | C$0.80
|
| Warrants: | No
|
| Underwriter: | Canaccord Capital Corp.
|
| Pricing date: | April 10
|
| Settlement date: | May 1
|
| Stock symbol: | Toronto: ORA
|
| Stock price: | C$0.93 at close April 9
|
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