ARU:CC - Aurania Resources (AUIAF)(ARU:CA) - Equity and Debt Financing Improves Financial Flexibility and Outlook

Equity financing. Aurania closed the first tranche of a private placement with the sale of 1,586,653 units at a price of C$0.70 per unit for gross proceeds of C$1,110,997.10. Aurania previously announced its intention to raise up to C$1,500,000 with the sale of up to 2,142,857 units which are comprised of one common share and one common share purchase warrant which may be exercised to purchase one common share at a price of C$1.25 for a period of 24 months after the close of the offering.Second tranche to close shortly. A second tranche is expected to close shortly and net proceeds will be used to maintain annual mineral concessions in Ecuador and to conduct further exploration and target refinement at the Awacha porphyry copper target and the Kuri-Yawi and Kuripan epithermal gold targets.Shareholder alignment. Dr. Keith Barron, CEO, participated in the first tranche and acquired 571,428 units for C$400,000 through his investment company. Earlier this month, Aurania issued an unsecured promissory note to Dr. Barron in the amount of US$1,187,500. The term is roughly one year and carries an interest rate of 2% per annum. It is not the first time Dr. Barron has provided financing to Aurania either through the purchase of equity or the issuance of a promissory note.Rating remains outperform. Recent financings will enhance Aurania's financial flexibility to prosecute its exploration program. As Aurania's founder and largest shareholder, Dr. Barron's support affirms his conviction in the company’s outlook and his alignment with the company and its shareholders. While the recent financings may have weighed on the share price, the shares may recover once specifics regarding Aurania's work plan are confirmed following payment of the concessions. Read More >>